I already posted yesterday that the real big test is if can get above the Nov-12 trend line that was broken when it moved below 1600 on June 20th. It is very common for it to throw back from the point of break down. I think it is around 1650 level and rising... If it can close above that then you can expect a test of 1687, until then this rally is a little bit of suspect. If we fail to at the trend line more than 2-3 times then watch out below....
but, on the positive note RUT has closed at a new all time high (over 1000 for the first time ever... Small caps have been leading this rally since Nov-12 lows and i don't see a reason why S&P can't do the same. The only real threat to this rally would be terrible earnings season followed by a gloomy outlook.
If the rally were to continue the biggest bang for your buck would be the real under performers/laggards. Metals (Copper, Steel) and Miners (Coal & even Gold) will play catch up.
Still battling the Nov-12 trend-line...(Sitting right on it)
It has to decisively move over it (Bigger volume). Considering RUT has already set new all time highs, NASDAQ closed at new 13 year highs, Logically speaking... Dow/S&P should follow. Will have to wait and see... (This week something has to give in, break-out or break-down)
"if can get above the Nov-12 trend line that was broken when it moved below 1600 on June 20th. It is very common for it to throw back from the point of break down. I think it is around 1650 level and rising..."
1652.35 and moving up... Looks like it wants to reclaim the Nov-12 uptrend line. It still has to take out the June-18th high (1654.19) and volume has to pick up to make this a convincing move.