S&P 500 Index (SPX) — Just when it looked like the S&P 500 and its brothers were going to break out, the market’s recent positive reaction to bad news turned sour.

Needless to say, I remain a bear but recognize the significance of the power of the trading range of S&P 810 to 1,010 to hold back a sell-off.

It could be that Thursday’s high of 918.85 will be the most significant high of the last four months. If exceeded, it will not only mean that the 50-day moving average has also been breached but that an intermediate resistance line has been broken and an important indicator, the stochastic which has issued successive sell signals, will have been wrong.

The chances are very high against these events occurring, and so I remain a bear and expect that we will shortly have another test of the major support line at 810.

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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.