Over the last couple of weeks, we have been discussing the market's advance from the lows and why retesting old highs was quite probable. To wit:
"The markets are close to registering a 'golden cross.' This is some of that technical 'voodoo' where the 50-day moving average (dma) crosses above the longer-term 200-dma. This 'cross' provides substantial support for stocks at that level and limits downside risk to some degree in the short-term."
As I penned on Monday for our RIA PRO subscribers (Try it FREE for 30-days and get access to daily trading ideas on the markets, sectors, portfolio positions and long-short idea list):
"As we discussed last week, the rally above, and retest of support at 280 sets up a test of all-time highs. I expect that will occur early next week. SPY is extremely overbought, so a test and failure at the highs will not be surprising.
Short-Term Positioning: Bullish
Last Week: Previously increased sizing to full weight.
This Week: Hold
Stop-loss moved up to $280″