Another good day yesterday with breadth even if the numbers do not show it. We made a pile of new highs and all our indicators strengthened. Did we top out? I don't think so.
Asia
Not much happening last night in Asia. It was obvious in our Night Moves evening trading session as we could not find anything to trade.
Europe
This morning Eurozone is flat to slightly down. Maybe we will be muted into Friday's numbers?
United States
Economic news
ADP numbers of should foreshadow the Friday numbers. Mortgage applications were up, reversing a trend and which we should see follow through for the next couple of months. Beige book at 2pm.
Earnings
Breadth Charts
40 DMA % Index
This chart is still looking strong and remains a good buy indicator with that 20 DMA crossing. Today the chart scores a very bullish +6.
10 Day High - Low
This chart scores a +6 today also with both higher bars and rising moving averages. The NYSE bar at 43.12 is higher since the last 60 trading days so that is very strong.
52 Week New Highs
And yet another +6 scores. Notice the Russell 2000 new highs have surpassed that pile high in January, the Nasdaq composite is close but the NYSE has a ways to go. The key for the NYSE will be the banks and their non-participation so far.
Conclusion
| Chart | Score |
| 40 DMA % Index | +6 |
| 10 Day High - Low | +6 |
| 52 Week New Highs | +6 |
| Total | +18 |
We are +18 on the charts which is perfect bull so now we begin to focus on finding weakness. Those banks need to start moving to keep this rally alive so I will start tracking them. The NYSE is dragging a little here so watch the NYSE A/D line also for strength. The Rut should be slowing its pace while the Nasdaq and DOW play catch up. Yesterday the RUT hit new rally highs but the others are about 2% away still.
$SPX
The ranges are getting tight here. The bulls need to get that price up and over the 1123 line. A clear of that area should yield a good quick six points up to 1129. For the downside there is a gap to close at 1115.75 and a strong base of resistance at 1112.75.
Bull plan: break through 1123 and take the elevator ride up to 1129. Hold any push attempt at 1115 and by all means protect 1112. Bulls need some prints today above that 1123 and a close above there too.
Bear Plan: Mind the gap and take the prices back down to 1112 without allowing any prints higher than 1122. A close below 1115 would be goo for the bears.
Hope to see you in the markets.
Marlin aka- RedlionTrader
