There should be some more upside here until the bulls get tested.
Asia
Europe
United States
Economic news
Housing numbers out this morning to either stamp out or add to what is looking like another gap opening.
Earnings
Lots of green and look at that Hecla Mining.. Revenue up 200%!
Breadth Charts
40 DMA % Index
Yeah! Confirmation. The slower moving 40 DMA is telling us what we already knew, time to head back up. The chart scores a perfect +6 today with the NAZ and the RUT showing strong crossings of the 20 DMA and the NYSE just squeaking across the line. There will be some bumps along the way, but for the bulls things are heading in the right direction.
10 Day High - Low
Also a perfect +6 today. We do have concerns on the RUT with the current value around 35% which is about as high as you can get so we are worried that some exhaustion may be settling in. Best case scenario is a slowing rising RUT from here and that the major thrust is complete, now we will have to see if it is enough to get us back up into orbit.
52 Week New Highs
This chart scores a perfect +6 with higher daily bars and a positively moving 5 DMA.
Conclusion
| Chart | Score |
| 40 DMA % Index | +6 |
| 10 Day High - Low | +6 |
| 52 Week New Highs | -+6 |
| Total | +18 |
Now the game is to start watching for weakness to creep in and from where. I would expect the RUT to hit exhaustion today or tomorrow.
$SPX
Bull Plan: Up and over the 1100 to 1105 area. There is a lot going on in that layer between resistance, fib numbers and moving averages. Best to clear that area and use it for support. The RUT and Nasdaq composite have already cleared their similar areas so it is catch up time for the NYSE, SP500 and DOW to get up and over theirs. A close above 1100 would be an A, 1105 A+.
Bear Plan: Turn the slower indices into the leaders by failing to climb out of the current bowl. Negate yesterday's afternoons rally and show the bulls that they must go back and fill the gap from yesterday's opening (down to 1076). I would fade today's open as it sits right at that 1100 resistance level and it just doesn't look like there is enough momentum to get us up through there right on the open.
-Marlin
