The comments below were provided by Kevin Lane of Fusion IQ.
So far the futures are up strongly, with the S&P 500 futures holding above its 200-day moving average near 933. Once open, if the S&P 500 can stay above its 200-day moving average (for most of the early morning), we are likely to see buyers come in a move stocks up towards the next minor resistance of 950. However, the next real test would not come into play until the 1,000 level.
The market continues to climb the proverbial “wall of worry” as many investors remain underallocated to equities with large liquidity pools still on the sidelines. Anecdotally, as long as sceptics of the rally remain the loudest voice’s it reinforces the idea that investors are underallocated and the market could move higher still.
Source: Stockcharts, June 01, 2009.
[PduP: Bespoke higlighted that it has taken 523 calendar days (359 trading days) since the S&P 500 last closed above its 200-day moving average.]
