875 is a MAJOR level on the S&P... for more reasons that you might be aware of... yes is was the 04/17 high.. but it was also 2 previous highs well before that... and also support at least 2 times even further back.
There's a few things happening here... in the first chart.. you can see we are in a rising channel.. and in a wedge (black).. we can ride the top of the channel without breaking anything.
but as you can see in this second chart.. 875 is a big level going way back, so a break of that could really signal as much as a 100-150 point move north in the S&P. The break must be on volume and must be convincing and must CLOSE above 875 but at least 5 points.
IF we close 880 or higher.. you must step to the side or go long. I would recommend going long. There is a huge gap after that with very little to stop the move. However, 875 has A LOT of resistance, and it's hard to believe we could get such an explosive move without a long shake out first.
GL trading.
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