Markets can work off near term overbought conditions - which this market had after a 5%ish move in just a week - either by (a) time or (b) price. Price is obvious (falling back down to consolidate a big move), whereas with time you simply chop over a period of days/weeks while moving sideways. This is what we've had the past 2 days. It is more impressive considering how the market has shrugged off all negative news. Hence the action still favors the bulls at this moment, and if this continues without faltering via a close below the 'line in the sand' (I won't repeat the level for fear of breaking another record), an assault on S&P 1120 should be coming sooner rather than later.
The S&P 500 is in an extremely tight range here of only 12 points from support to breakout; it will be interesting to see which way we end up headed. If for some reason 1108 is breached, support at 1100 and 1070 will come back into play.
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