Pre-market futures point towards a flat to slightly negative opening for the S&P 500 with the indicator down roughly 1 point. Yesterday the market gapped up strong at the opening and spent much of the day in the green until mid to late afternoon when weakness appeared. The S&P 500 closed +4.58 points to close at 1293.67 after being up as high as 1303.
Yesterday's afternoon intraday weakness was really the first that the market has seen in 2012. The latter half of 2011 had numerous days where the market would start strong and then fade late in the day. That has not been the case so far this year, which is a good sign for possible further market strength.
The market is pushing up against a crucial resistance zone in the 1300 area as shown in a chart I posted back on January 7, now updated below. Of note is the slightly lower high in the RSI. I have a position in TZA to hedge my longs, and may add to it if the market shows more weakness later in the week.
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