Investors should expect a cooling-off period and a modest pullback to the breakout triple-top at S&P 1130

The S&P 500 Index ended a volatile session with a gain of 2.1 points, closed at 1180.26. The stock market climbed as much as 1% to set a new five-month high, but a rebound in the dollar failed a morning rally.

Stocks had weakened in the afternoon as the dollar strengthened. The market is trading a lot counter to what the dollar’s doing, but investors  expected stimulus support from the central bank are unlikely to let stocks slide too far. Quantitative easing is a nice support and I also think the potential for some more pro-business news in the election coming up is helping to stabilize the market too. However, market also moved up pretty substantially and you get into some of these questions about whether all these positive news and numbers were priced in.

As long as the support zone of S&P 500 1150 to 1175 holds, the chances of a challenge to the April high is still possible this year. But after such a sustained rally from the August low, investors should expect a cooling-off period and a modest pullback to the breakout triple-top at S&P 1130.