It is painfully obvious that the S&P 500 hates 2100. You don’t believe me, fine, then explain the chart below to me. 

It is the monthly chart of the S&P 500 and it sports one of the most impressive levels of resistance the index has ever seen. It goes all the way back to the beginning of 2015 and since then it has rebuffed every attempt to push the market higher. Fourteen of the last seventeen months has tested this level and the results have been the same – sell the market off!2100 resistance s and p 500

Just look at today. We reached 2109 – not uncommon but now we are trading back in the red and below 2100. This is the pattern the market keeps exhibiting and quite frankly I have no desire to go long on this market when it is trading above 2100. Why? Because the reward for doing so doesn’t exist. 

Break out into new all-time highs, and I’ll change my tune, but while the market continues to sport favorable risk/reward scenarios for every move that takes the index above 2100, then I’ll keep shorting it until something changes. 

the bullish conundrum spx

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