Markets are showing some resilience this morning after yesterday's selloff and recovery. Expect more of the same until the SP500 can close successfully above the 8/31 high of 1230.71. The Qs continue to lead and may be challenging the summer highs by the time the SP500 reaches resistance at 1250 to 1260.
Markets are doing a great job of generating pessimism while going nowhere, which is building the base for the next major leg up in the cyclical bull market. Unfortunately, this process may last many more months as I have said before. The risk is to the upside, but short term gains are the highest probability right now with few exceptions.