The S&P remains very strong, especially after holding 3337.25 (38.2%) on Wednesday. The longer term target is new all-time highs, however they did close right at the 3474.00 major Gann square and are into an area where a lot of markets fail from when retesting the highs. This area is 78.6% of the move back up and there are two different levels to watch for, one is the nearby chart, where 78.6% is 3504.50, on the Dec. chart it is 3495.75. Trading up in to this area, or above and closing back below the 3474.00 major Gann square is a negative sign and at a minimum could send it back to test the 3266.00 major Gann square. As always on any setback we will watch all the retracements and only breaking down to 38.2% at 3373.00 would be a very positive sign, just as it was last Wednesday. With a couple close's above 3504.50 they should go for new all-time highs and the 3690.00 major Gann square.