Market Continues to Grind Higher

Its been an unbelievable run upwards. The S&P has now closed higher on 13 consecutive days. We have not had two consecutive down days since before February 5th. The fact that this is happening at a market top and amidst a fundamentally unsound economy, it is quite spectacular really. It just goes to show you that you have to play the charts and not get overly concerned with market fundamentals in the short term. The trend has proven that it really can be your friend. The last month and a half is as good of evidence of this as you can find. There continue to be signs that we are topping, but the charts are still bullish, so it remains dangerous to fight this trend. As we break new highs we continue to form support at previous day's highs and lows. Resistance to be aware of is the top of the current uptrend channel the S&Ps have been trading in since February 5th (that is around the $118 to $118.15 today) on the SPY.