Many ETFs are breaking above major resistance levels, with pathways clear to even more gains as the testing of levels from last August and September are now back on the agenda.

Hershey Foods (HSY) has a clearly defined bullish flag formation, and entry possibilities could be on the radar in the next couple of sessions.

Clive Corcoran would not advocate shorting this current rally since there are some unusual dynamics at work at present.

The one fly in the ointment for the global recovery story would be the need for some supply dampening in the fast-growing Asian economies.

The fixed income market will be vital to monitor over the coming days as the questions about the Fed’s exit strategy and the ability to keep funding massive auctions is still causing unease.

Indicators from overseas action on Monday in Asia and Europe, plus a firm bid on US futures, suggest that the S&P 500 could continue moving ever closer towards the 1000 target.

The break above 960 on the S&P 500 is now bringing into play two factors that could perpetuate the surge to 1000 and beyond.

Overall, the resilience of equities continues to suggest that the bulls are prevailing against the sceptics, but there are still some key hurdles to be confronted by several laggard indices.

The US Dollar index is approaching a level where some support (perhaps just temporary) should be expected.

This week Clive Corcoran will be looking at the possibility of a break above the recent highs for the S&P 500.