Mid-day Market Check

The market is soaring for the third consecutive day. In recent posts, I commented about the build-up of bearish sentiment and how I though those bearish bets would likely get unwound as the market moved higher.

This is likely what we are witnessing today, and is exacerbated by options expiration this week, as traders rush to sell puts that are going to expire.

Technically speaking, the SPX closed above its 50-day average yesterday for the first time since March. It is building on those gains today, and has taken out the highs from 5/9 at 1178. Near-term resistance now comes into play around the April highs near 1191. A series of higher highs is very bullish, and would confirm that the trend has changed from down to up.