This last move up since 2 September has shown no sign of...

This last move up since 2 September has shown no sign of weakening in the S&P with the index last night finding support above a 1/4 retracement of the move.

- 1/4 of (1048.18 - 991.97) = 1034.13

- 23.6% of (1048.18 - 991.97) = 1034.91

- Last night's low was 1035.

As that level of support was obtained from considering the most recent move (2 September low to last Friday's high which is also the smallest range), the implication (continued strength) applies to a shorter timeframe into the future.

The fact that the index found support above that level (1/4 retracement) on last night's pull back suggests to me a slightly stronger picture than the intermediate timeframe considered last week through analysis of the next larger range from the 8 July low.

My reasoning is that the 1/4 level on both those prior retracements was breached, although only marginally, with the second breach being greater than the first.

So now that there is a new high, there are new ranges and new support levels to consider on any retracement from here on.

There was also a close on the high for the day last night which could indicate the buyers may take a breather here although, again, I wouldn't bet on it.

Cheers Chris