Friday we did not know what the market would do when it hit the cited resistance level. Today we found out. Rather than pushing through, the SP500 turned back from the August 2007 low of 1370.60 after reaching an intraday high of 1370.58.
Wave (ii) down is now underway. The April correction lasted 6 days. Although there is no way to know how long wave (ii) will last, more than likely it will be less than 6 days and probably only 2 or 3. The next push higher should take the market through 1370 and complete the rout of the bears who have been trying to short this market since April 2010. At this point only a failure of the April 18 low of 1294.70 would change the outlook.
It was interesting to see the mini "flash" crash in silver last night. Bearish articles on silver have been in the media for the last couple of weeks as silver approached $50. There was even more bearish sentiment today. But to put things in perspective, after a correction lasting a little over two months the stock market began a rally that eventually retraced all of its flash crash. I expect the correction in silver will not last so long and then it will also push to new rally highs.