The S&P reached a low of 1684.50 yesterday, covering the gap open from Sunday, Sept. 15 when the news that Summers’ had withdrawn his name was digested. Only a close above 1698.50 will signal a bull leg to retest the highs.
Due for a "technical correction," U.S. equities remained in a small range overnight hugging unchanged. European stocks as well as the Nikkei have fallen back this session after disappointing data across the board.
Equities continued higher this session before retreating as the S&P reached a high of 1667 against our major target of 1666. Investors felt more comfortable with the likeliness of the Fed's backstop remaining in place.