Yesterday's market action was very bullish and has us just shy of market highs. The stampede has caught on around the rest of the world:
Asia
A little profit taking on the Hang Seng, the Shanghai was down about .48% on a slow sliding trend down day
.
Europe
As of noon time in Europe the markets are at their highs of the day from a flat open to about a .5% to .7% gain as the wait for the United States open.
United States
Economic news
No news today.
Earnings
Breadth Charts
40 DMA % Index
All systems go here as we start making new highs. Take note where these indexes curl over. If history repeats we should be making new highs on lower and lower breadth here. But for today this is a strong chart and scores a +6.
10 Day High - Low
Nice rebound in the 10 day high - lows. The NYSE was strong enough to turn the momentum but while the other two put in impressive turn around days they did not move the 5 DMA so the chart only scores a +2 from yesterday. Today any reasonable close should get us a +6 chart. Watch those NYSE highs they should exhaust pretty soon here.
52 Week New Highs
Nice bullish recovery on the 52 week new high charts. This gets a perfect +6 bull value for higher bars and higerh moving averages. We passed the previous peak from mid February. Let's see if we can get up to those 500 numbers set on January 11th.
Conclusion
| Chart | Score |
| 40 DMA % Index | +6 |
| 10 Day High - Low | +2 |
| 52 Week New Highs | +6 |
| Total | +14 |
We have turned around here fairly quickly now from bearish to neutral to bullish. Any green today and we should score that perfect +18 tomorrow.
$SPX
Today is the the day that my trading range scenario will be tested. In all honesty it was tested yesterday and we have broken out. In that November/December trading range there was no closes above the 1110 ish number and we closed above 1114 yesterday. Today we are looking for some type of follow through. There are still plenty of bears out there looking and waiting to pounce on any weakness but yesterday the bulls did everything they needed to do to get an A. They missed the plus by failing close a 15 minute bar above 1116, but close.
Bull Plan: Hold 1110 today and close above 1116. Hitting 1120 with some prints will add to the bull story. In reality just holding between 1110 and closing flat on high volume would do it for the bulls, but they have price momentum, let's see if they can keep it.
Bears Plan: Let the bulls think they are going to get 1116 free and simple and then hold them off until they fail and sell off down to 1107, breaking 1110 on the way. A close below 1110 today would have the bulls wondering if they were ever in control.
My bet is the bulls win here. They have the 100 year momentum, the 3 month momentum and the 5 day momentum here. That is a lot to stop. The breadth is building so here we go.
Good luck out there, I hope to see you in the markets.
Marlin (aka: RedlionTrader)
