The longer the S&P 500 Index consolidates its breakout atop 1130, the more likely this rally will continue

The S&P 500 Index reversed early losses to end 5.5 points higher, closed at 1147.7, though the index was stopped short at the psychologically significant 1150 level. Stocks shrugged off worse-than-expected housing and sentiment data to finish higher Tuesday. Despite an early slide, stocks were able to settle with solid, broad gains Tuesday.

The Consumer Confidence Index dropped is further evidence that the consumer is still not feeling particularly upbeat about what they see going on in the market or in the foreseeable future, which obviously impacts their spending behavior. That's enough to hold markets back.

Today's market is very impressive, 1130 still act as a very strong support today. The way the market shook off the poor consumer confidence data was rather impressive.There could be even more upward momentum in store, as the longer the S&P 500 Index consolidates its breakout atop 1130, the more likely this rally will continue.