Markets can work off near term overbought conditions - which this market had after a 5%ish move in just a week - either by (a) time or (b) price. Price is obvious (falling back down to consolidate a big move), whereas with time you simply chop over a period of days/weeks while moving sideways. This is what we've had the past 2 days. It is more impressive considering how the market has shrugged off all negative news. Hence the "action" still favors the bulls at this moment, and if this continues without faltering via a close below the 'line in the sand', an assault on S&P 1120 should be coming sooner rather than later.
The S&P 500 is in an extremely tight range here of only 12 points from support to breakout; it will be interesting to see which way we end up headed. If for some reason 1108 is breached, support at 1100 and 1070 will come back into play.
No major economic news tomorrow so 'premarket magic' should be back.
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