Looking for 2800

This is a classic failed breakdown setup.

After trading in a tight range, the S&P 500 finally broke under 2700.

If this were a weak market, we would have seen rollover and maybe gone to retest some support levels that were put in from the past few months.

Instead, the breakdown under 2700 was rejected as aggressive buyers stepped in.

When you see a failed breakdown, the odds are the market will run higher to test the next level of resistance.

For me, that's 2800. Many times when an obvious level of resistance exists, the stock or market will grind higher into that level. Why? Because sellers know where the resistance level is, and won't sell until we get there. It becomes self fulfilling.

A loss and hold of 2700 invalidates this bullish thesis.