Strong Support For SP500

While all of the factors (completed wave count, waning breadth and momentum, and cycles) appear to be in place for a top to occur, the one fact that cannot be dismissed is the multiple levels of support for the SP500.  In addition to the April and November 2010 highs, the SP500 is riding above the lower channel line for the rally from July 2010 and the median line from February 2010.  It will take a sustained break of the January 2011 low and then the 2010 highs in order for any significant correction to occur.  This may be easier said than done.