The is poised to cross above 1,800 and keep on ticking, powered by the momentum that's kept bulls happy all year.
Equities are in the green, being led higher Monday by emerging markets after good data out of China. Even more significant were comments that the Chinese government will encourage more private investment in state-controlled industries in an attempt to help spark the economy. This declaration was greeted enthusiastically by Asian markets, and the optimism spilled over into the S&P futures.
The December S&P e-mini futures reached a new high Monday morning above 1,797, and are poised to surmount the key 1,800 level this week. The next upside resistance comes in at 1,810 to 1,812.50. A close above 1,800 will help the market continue to feed off of its own bullish momentum.
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Pullbacks should be viewed as buying opportunities. If we do see a small correction this week down to the 1,774.50 to 1,776 band, then savvy traders should jump right in.
There is no major data to start the week, but investors will be looking to comments on the economy from Federal Reserve Presidents William Dudley and Charles Plosser on Monday, as well as Charles Evans and Treasury Secretary Jacob Lew on Tuesday.