MKM Partners: The Market Is At A Critical Juncture

Jonathan Krinsky, chief market technician at MKM Partners, published his weekly Technical Strategy over the weekend. He feels the market is at a critical juncture, with the uptrend in the S&P 500 remaining intact, for now.

Some key takeaways:

• As long as the bulls can defend the 1955-1960 area, they continue to have the upper hand in large-caps.
• Given that there was a 90 percent down day near the bottom of this channel followed by an up day on Friday, it would appear the bulls have once again stepped up where they needed to.
• Well defined uptrend channel remains intact, as S&P 500 holds above its 100 DMA (1956).
• Close above 2000 would negate our near-term cautious view, and suggest new highs were on deck with a measured move towards 2070.
• Break of ~1955 would now open the door to the August low at 1905.