The breakout through the key 2,975 resistance led more buyers to enter the market. Sustained trading above the psychological 3,000 level will eventually pave the way for another leg higher. Next major target for the SPX500 is 3,135; a potential violation of the latter would extend the rally toward 3,212.
Initial support for the index can be spotted in the 2,974-2,988 area. In our view any potential pullbacks should be stopped around this zone. Absolutely crucial on the downside, however, is the major 2,907 support.