S&P 500 Index (SPX) — On Thursday the S&P 500 took out last week’s high of 833 following a shallow pullback to just under 800.

But despite a new buy signal from the stochastic, if the bulls are to turn the tide they must mount a high-volume attack on a number of resistance levels, beginning with 820 to 87, which is in the broader zone of 800 to 920 established from October to mid-February.

A 23.6% retracement of the entire bear market (based upon a Fibonacci number) at 886 roughly coincides with that zone, so it is likely that the target of the recent run-up lies within 875 to 900.

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Sam Collins is a registered, fee-based portfolio manager who may be contacted samailc@cox.net. You can also check out an archive of some of his most recent market outlooks by clicking here.