What a quarter for the market. For the most part, the market went straight up with hardly any pullbacks. It was new high after new high with only slight pauses followed through with bursts to the upside. How long can this scenario continue? As long as the June S&P 500 June futures maintain 1380.50 on a closing basis, that is how long. The bears made a feeble attempt on Thursday (low of 1386.50) but were rebuffed by fund managers attempting to dress up their portfolios for the end of the quarter. Although the index stalled at 1404.00 and 1406.25 on Thursday and Friday, not much stands in between those levels and the high of the move at 1419.75.
So what rescued the market from a meaningful correction on Thursday? Besides window dressing preparation, Exxon-Mobil (NYSE:XOM) and Chevron Corporation (NYSE:CVX) joined the party. Both issues approached major support (XOM-85 and CVX-105) and held firm as High Frequency Traders, stepped ahead of the mounting bids and forced the big money to pay up. And pay up they did, nudging XOM towards major resistance at 87.25 and CVX above 107.00, a level it struggled at on Thursday. In my opinion, if these issues can hold their Friday closes and rally, they will carry the rest of market along with it and make yet another new high for the move above 1419.75. On the other hand, if the end of the quarter fluff cannot hold, these issues will slide back down and test the weekly lows and bring the futures along for the ride.