What a difference a week makes. Since our last update we had the results of the French elections and the world markets seem to like what they see. Bears have failed yet again to do any serious technical damage and the S&P has managed to breakout to the upside from the channel shown below.
Note though that the momentum is still on the weak side and there are resistance levels above that need to be taken out. It seems likely that we will see at least a test of 2400 as it’s only 15 points away. Whether we see more upside will depend a great deal on news coming out of Washington regarding taxes and of course any geopolitical developments.