As I always do when we hit a key level, I am going to lighten up some long exposure as we hit it, and will be happy to jump back in on a break over this level. I put on some TNA and SPY calls yesterday (both modest positions of about 3%) since the 'action was solid', and will be selling those now that we are here at 1120. A move over S&P 1123ish would have me re-engaging and we'll keep moving up our 'stop levels' if this happens. In this case from S&P 1108 to S&P 1120.
1120 is the 'exponential' moving average; if you are curious the 'simple' moving average is up at 1140 so I'd assume that would be the next upside target if we breach here.
As hard as it is to believe - if bears cannot put a stop to this soon - it appears we are simply back to the low volume, V shape grind up moves that are so atypical in history (normally you see volume EXPAND on moves up) but now becoming routine since summer 2009. As with much of the past year if there is not a market moving event that causes humans to react, the market simply grinds up or sideways on algo trading ... almost self automated at this point.