The contra trend rally in a confirmed downtrend now has the bulls back in control. While Bannister looks for a year end 2800. “S&P 500 EPS +19% in 2018E with the discount rate (Baa yield) +26% causes the S&P 500 to top and the post-2009 bull market to end by late 2018. Our S&P 500 price model is EPS divided by the Moody’s mid-grade Baa yield . We see 2018 S&P 500 EPS of $148 +19% y/y and the Baa yield rising from 4.17% 12/31/17 to 5.25% 12/31/18, or +26% y/y (4.59% now). This ΔEPS/ΔBaa (.19/.26) causes the S&P 500 price to flatten in 2018 and end the year at 2,800….” click here full report {97 <GO>} For now the tape says higher.

Bottomline:If your long you’re good to go. Fridays open and higher high confirmed upside continuance, withe break of TD prop 2775 we now set our sights on 2803/2814, 2853, then longer out– 2955. Stops ? A close below 2720.94 followed by a lower open and lower low.

SPX Index : S&P 500 Index