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Here's where we are.... for a short while today, the S&P 500 did manage to trade above the first of its key resistance lines at 1884. It did NOT, however, even get a chance to take a shot at the second one before rolling back under the key 1884 level. It looks like that 1884/1895 zone is still an effective ceiling, like it was last week, like it was in early April, like it was in mid-march, and like it was in early March.

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As I suspected was a distinct possibility in yesterday's newsletter, all it took to spark a rebound from the S&P 500 on Wednesday was a move just a tad below a major support level at 1864. In other words, right when it looked like stocks were starting a more significant pullback, it switched gears again and doled out a fairly nice gain... at least for the S&P 500 and the Dow Jones Industrial Average [not so much for the NASDAQ]. In retrospect, today's action looks a lot like the action from two Mondays ago (the 28th) when the index slumped a tad below the 20-day and 50-day moving average lines on an intraday basis and then came roaring back for a solid gain. Take a look.

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Check out the chart of the S&P 500 below. Yes, it looks like the ceiling at 1885 did its job by repelling the bullish effort before it got started. Even with the 0.9% slide, however, the S&P 500 still held above its major support at 1863... the 20-day and 50-day moving averages.