From SPX 666 to RUT 666: where will markets take us next

Almost exactly one year ago, the S&P 500 ($SPX) bottomed at 666 and change. Today the markets were up, with the Russell 2000 ($RUT) making a higher rally high at 666. Hmmm! And in the SPX, today at 1135-ish capped 90 points up from the 1044-ish February low. What's next?! Those Elliott Wavers who thought the January highs were "the top" have been re-visiting their wave counts. But even though people's eyes are being opened to the idea the markets ARE headed higher - that doesn't mean we won't see a pullback.

There's a long-term trendline at SPX which Andre Gratian has pointed out, and Marty Chenard too (in a post I gave a link for, somewhere either on this blog or my UBTNB3 blog that has a feed here). And Tony Caldaro's pivot of 1133 ranges up to 1140, which was resistance today. Plus there's the 1128-ish area that the .786 retrace for the SPX back toward its 1150 January high. This Fibonacci retracement level can be resistance, at least for a pullback.

Then there's Terry Laundry's T Theory, if you're following his work as I also recommend. While he's projecting higher into May, he's also saying a small "T" may top out around March 8. That alone may help "Turnaround Tuesday" earn its name!

Below, I've posted the SPX weekly, RUT monthly, and VIX daily. I can't guarantee an equities index pullback, but given the levels and factors described above plus the VIX stretched down, it would be surprising to see a reflex pullback of some level. I'll be surprised if the VIX makes a new low under 17, but we'll see. Given that it closed down by its low of day (LOD), as stock markets closed near their high of day (HOD), it would be unlikely for Monday to accomplish a reversal bar by itself. We'll have to see how things are looking on "Turnaround Tuesday" which is Tuesday next week (next week being the week prior to options expiration).

A reader asked, can the 3/1 Bradley date be a swing low? Answer is, "yes it can"! Even as I privately wonder how predictive the Bradley dates actually are. It looks like we're just as well off to stick with our favorite analysts and indicators to puzzle it out on our own. Which is a great way of reminding you that we'll have another interesting lineup of great analysis here this weekend.

So go enjoy your Friday evening! And "see you" this weekend!