An encouraging 2nd day of gains which have carried ^SPX 0.15%  up to near important "make-or-break" resistance. The breadth is about 3/2 positive with Utilities, and REITS lower but very good start to 2025 out of Technology and Energy. Given the negative MACD on SPX on daily and weekly basis and lack of recovery out of Equal-weighted S&P 500, more will need to happen before being able to immediately call for a move back to new highs. I suspect that 6020-6050 area could likely hold into tomorrow as this adjoins the highs of the ongoing consolidation from early December. I'll be open to embracing a broad-based move when it occurs, but for now, today's move hasn't provided that "green light" in either breadth, nor structural improvement just yet.

One quick update on TSLA 0.58%  - The stock's short-term pattern turned more negative on the violation of $415.41 this past Tuesday (New Year's Eve) and today's Q4 deliveries missed consensus and their 1st Quarter sales drop of 1.1% marks the first annual EV sales decline in a nearly a decade. While this brought about an "open-gap" this morning, this decline also appears short-term in nature and will make TSLA attractive if/when this reaches its 50% retracement level near 350 (which cannot be ruled out) My technical expectation is for a drop to $344-$362 before this bottoms which would make TSLA an appealing risk/reward for buying dips. Thus, similar to SPX, this has pulled back in an ABC-type pattern, while its larger trends and momentum remain quite bullish. Overall, I expect a bit more weakness over the next 4-6 trading days ahead of a possible low, and patience here is also needed in the short term, as lows do not yet seem to be in place.

This daily ^SPX 0.15%  chart helps to put this recent consolidation in US Equities into perspective. While the intermediate-term SPX uptrend intersects near 5700, the short-term trends and momentum are still negative. Key levels for today into tomorrow's close lie at resistance ranges at 5945-68 for SPX on the upside and 5832-5868 on the downside. Any break of this week's lows at 5868.86 should result in mid-December's lows being tested at 5832. If this level breaks (which is a distinct possibility) then it's likely that SPX 12/6-12/20 decline should be approximated in both time and price before bottoming, ultimately forming an ABC-type pattern over the next week. The good news for the "bulls" is that downside likely should not prove too extreme in either price or time before bottoming, and my downside area of stronger support lies at the 5650-5700 area. Overall, patience is required, but this ultimately should bring in buying opportunities sooner than later as fear should most certainly escalate if/when December lows at 5832.30 (SPX) are violated.