The markets can be compared to a car engine. Like the car engine that requires multiple cylinders to fire in sequence to generate the torque to move, the stock market needs multiple segments to fire at different times in order to propel to new highs. During this rally the RUT and small caps have fired and now it is time for the heavies like the financials to fire. We are starting to see that with the banks moving yesterday and the relative strength of the NYSE. That relationship should continue this week so watch the banks.
Asia
Japan and China put in an NR7 type day today as they drifted into their closes mixed either slightly red or green.
Europe
Europe is down about half a percent across the board. There was not any real earth shattering news in the Eurozone this morning just a consolidation day of the recent gains.
United States
Economic news
Two days in a row without any real market moving news.
Earnings
Earnings season is winding down now.
Breadth Charts
40 DMA % Index
Still bullish and waiting for the "curl". Yesterday did put a little wrinkle into upward momentum but a good follow through day will iron out the line. The chart scores a +6 today. 
10 Day High - Low
10 Day high bars came in strong despite the NR7 action. The chart scores a neutral 0 but is a very strong 0. The NYSE was the relative strength yesterday and that is good.
52 Week New Highs
This chart scores a +2 today with the NYSE putting up the 2 for both a higher bar and upward momentum. The NAS and RUT missed slightly. Again on a day that saw very little in the way of price movement the strength of the new highs is a hint at the underlying strength and breadth of this rally.
Conclusion
| Chart | Score |
| 40 DMA % Index | +6 |
| 10 Day High - Low | 0 |
| 52 Week New Highs | +2 |
| Total | +8 |
$SPX
It was an NR7 day again yesterday but there were hints that the day was more bullish than the price would let on. First. the price held up. That is validation. The bulls did make a little progress by printing above 1140, the bears made no progress unable to break 1136. The breadth indicators (52 Week highs and 10 day highs) all came in strong indicating that there was a strengthening market behind the price.
The ticks went hours on end without putting in a negative tick during the day another sign of strength. I am expecting a follow through day here soon to put in the new rally highs for the NYSE, DOW and NAZ.
Today may not be that day as the bulls will be tested again today. The upper resistance is the 1140.50 area with another level at 1146.50 and then the top at 1150.50. On the downside there is plenty of support now. 1136.80 is first level than 1133.40. Firegap for the bulls is 1120. A ruin of 1120 will put into question this leg of the run.
Bulls plan: Re-gain momentum and push for higher highs. Break the 1140 and close up or near 1146.
Bears Plan: Continue to wear down the bulls and shoot for 1133.40, then break it and ride the market down to 1125.45 and stir up a batch of that "double dip" chatter.
Watch the resistance levels for who is in control. The A/D lines and the strength of the NYSE and the Banks will tell you if we are going higher. Both these need not only be strong today but stronger on a relative basis to other sectors.
The RUT, while the leader, may be full of "dumb" money and therefore too stupid to know to slow so watch the NYSE.
See you in the markets-
Marlin aka- RedlionTrader
