Last night was spent working with Adobe on a problem that resolved itself by Adobe promising to expedite and me actually doing something. That left little time this morning for charts so here is my shot at getting something out:
10 Day High - Low:
When it rains it pours and the Naz 10 day chart did not generate overnight so I have the NYSE and RUT both which put in very bullish +2 scores as you can imagine with yesterday's price action. The slower momentum line has turned up indicating a resumption of bullish upward moves ahead. If we can at least score a neutral today the charts will confirm.
40 DMA % Index:
These also moved into the bullish column with a +6 total chart score. All three indexes have now crossed their 20 DMA indicating the end of a correction cycle and start of a new leg up. Again another day is needed for confirmation.
52 week new highs:
Our 52 week new highs charts also put in a +6 score. Looking for at least neutral today which would be around 100 new highs in the first 30 minutes.
Conclusion:
Breadth wise the charts have done a 180 and turned perfect bullish with a score of +18. There may be some weaker price action today but breadth momentum has moved to the upside.
This is a copy of yesterday's SPX chart. You can see how the price broke through that 1185 area which then became support with 1188 area proving resistance to any upward move.
Today it looks like we have a good chance of opening up below that 1185 line so watch the .5% pullback area for support. If that breaks it could be a quick trip to 1178 and then hold at 1175.80.
Usually these thrust days are followed by NR7s so we could be trapped here between 1181 and 1187 all day today.
The dollar is on a run back up to the top which should put some damper on price activity this morning as some still don't believe that we can have a strong dollar and a strong market.
Volume should return today as both Europe and the US are back from spring breaks.
Good luck out there.. Come visit us at http://ttthedge.acrobat.com/traders
Marlin - aka Redliontrader
