High-Level Consolidation in S&P Ahead of Additional Upside

The ProShares Ultra Long SPY (NYSE: SSO) remains within a narrow range atop the June 8 upleg, as does the emini S&P 500 emini, which continues to grind in a very narrow range between 1116 and 1110.50. All of the action of the past two sessions acts like a high-level bullish consolidation ahead of a thrust to the upside into new high territory projected into the 38.70 area next for the SSO and 1125-30 in the e-SPU.

Only a failure to climb into new high territory followed by a plunge beneath 36.95 will wreck the bullish continuation scenario -- at least for the time being. Key support in the e-SPU remains at 1102-1100.