The resilient U.S. economy continues to chug forward despite slowing global growth and fears of the fiscal cliff.  Correlations between falling jobless claims, a falling unemployment rate and rising confidence are a growing tailwind for the bulls.  

What’s telling is that markets are no longer rallying on good economic data and as the saying goes, it’s more important the reaction to the news than the news itself.  If markets have been unable to rally with continued good news, it may be time to harvest profits from the latest run up.  

The S&P 500 is right at support.  It’s important for the bulls to defend this line.  If they’re unable to, even with good news, then a downtrend will begin to get established.