The 16th Time a Charm?

SPX tagged our target at the 2.24 Fib extension yesterday — the 16th time it has touched this important level since the beginning of the year.

For now, the Fib remains support. The moment SPX drops through it, it becomes overhead resistance. And, with the SMA200 now only 38 points below it, potential drops aren’t as scary as they were in February when it was 170 points below.

VIX spiked to within a few pennies of our upside target where it met reasonable resistance. And, the Nikkei and the Dow backtested their SMA200s yesterday, suggesting the stars will align to support stocks through the end of the month/quarter.

But, what about oil and (especially) gas, which are still exerting upward pressure on CPI? Can their latest breakouts hold, or will they fail and drag stocks back into the red for the year?