Up again?

The market briefly dipped down last week, but as we already suggested in our comments, buyers came in very quickly to buy the dip.
Overall the lunar Red Period that just ended has produced a slight upside, which implies that the upside momentum remains intact for the moment.
While we still could get another dip this week, the lunar Green Period favors another swing to the upside.
As always, the market has a habit of frustrating as many traders as possible, and that’s what we see right now by not giving traders who missed the rally any chances to get in on a pullback.
Of course, this too will end.
Let’s have a look at the current chart for S&P 500 (click for larger image):

The S&P remains near the level where it broke above last year’s high. My Earl momentum indicator has also reached a level where it could bottom and turn up again.
With a new lunar Green Period now starting there is good potential for this market to attempt a climb towards 1400 before a somewhat broader pause or correction sets in. We are then talking about April going into summer.
If the market fails to go up any further in the next couple of weeks, then we will have a real sign of weakness that marks the end of the recent rally.

Stay tuned, Danny