Sell-Off Fails to Follow-Through

Heading into the final two hours of trading, the S&P 500 emini (e-SPM) is perched right near this AM's new high of 1210.50. After an intervening, intraday pullback into the 1204 area, the index pivoted to the upside rather than fully retest the low of the session at 1201. Once again, a sell-off that could have potentially inflicted a bit of near term damage failed to follow-through on the downside (beneath the pre-open low at 1201.00 in this case). Now we have to suspect that the bulls will attempt to run the index into new high territory, which could spark a vertical assault on the 1220/25 next target level (near 120 on the SPY).