…as a 5 min pivot and std dev 1 of VWAP has been taken out to the downside after hitting resistance close to critical 911.75 resistance.  Look for rallies that are sold off at the 50% retracement from the 911.00 highs as additional confirmation, along with <-800 TICK readings (none yet today).

…with no notable pullback with longs hitting asks in size at highs.  The day is looking a lot like May 18.  Per our morning report, 911.75 is the last holdout for the shorts.  Sometimes these days get large reversals in the afternoon.  Watch for a 5 minute pivot to be taken out along with the 1st standard deviation of VWAP after hitting resistance.

We’re seeing financials and health head lower, as most of the other sectors remain aloft.  We could see a retracement here and will look for support to hold at key 50% areas from the morning lows.  These areas are 898.50, 895.25 and 890.50.  If the market rallies off the first or second and makes new highs, we will consider that very bullish.  If 893.25 does not hold, it starts to look bearish, though we could still rally off the aforesaid 890.50 area.  Bulls throw in the towel for the day below 887.25.

We warned of a 5 minute candle on tremendous volume in this morning’s report as an indication of a possible reversal leading to a short covering rally.  While it did not close on its highs, the volume is greater than anything we’ve seen since the beginning of the March rally, and 900 was just exceeded.  Shorts beware.

Consumer confidence came in above expectations at 10:00 am and is propelling the market higher with broad sector partipation after the market was able to break from the consolidation area we noted in the pre-open report.  900.00 will serve as the next resistance area.  Volume has been above average compared to the past 10 trading sessions and NYSE advance decline is not indicating a trending day, but has been not as reliable as usual over the past coule of weeks.

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