Technically, the SPX is still stuck in the 875-950 range that has been in control since early May. Summertime is known for being fairly rangebound as markets are quieter (except last summer of course). I actually think the SPX can continue to gyrate within this range until Labor Day, which is about 6 weeks away. Of course anything can happen but if the market can stay in the current range for the last 2 months, what's another 6 weeks?
Like I said, short term I would expect a pullback and even would not be surprised to see that gap from last week filled soon. Another thing I noticed is that last week's candlestick, as pictured in the chart above, regained all of the previous 4 weeks of losses and brought the SPX back to 940. That is bull market price action. Time is just as important as price when it comes to technical analysis. Also, the retracement from June came down and bounced almost exactly off the uptrending 20 week sma and then closed just above the 50 week sma.
Shorts>>> FWLT, ADSK, MLM, DE, ANF