Can the bulls make it two in a row?.. Breadth improving.. $SPX

Good morning. 

 

Apple came through big time last night.. Thank you Steve.. and the world did not drop the ball as we spun the globe so we are sitting flat to up getting ready for today’s trading. Not much on the economic news front, mortgage apps should be out by now and Bernanke will be testifying on the hill today starting at 10am.

 

Quote of the day:
I have noticed that the people who are late are often so much jollier than the people who have to wait for them. – E. V. Lucas

 

Chart

Score

 Day-1

Change

40 DPI

+6

+4

+2

52 WNH

+2

0

+2

10 DHL

-0

-6

+6

Total

+8

-2

+10

 

Our breadth charts continue to strengthen in here, the 40 DPI which has been chopping is now back into full bull mode and waiting for a follow through to get some headroom above the signal line.  The 52 week new highs has the NYSE now in the bull column and our 10 day look at highs minus lows has turned neutral.  All three have strengthened and put in increasingly stronger bullish scores.   I kinda wish our charts had put in just a little more weakness as we don’t have a lot to the topside right now before getting into overbought conditions again.  But it is what it is and we did get stronger.  Today will be proof of bull strength vs. bear weakness.  Simply put was the rally yesterday based on the strength of the bulls (if so we can go higher) or the weakness of the bears covering due to rumors and fear of oversold (in which we should not go much higher).

 

$SPX chart:

 

The 1060/1059 area from yesterday held at the open and the bears were unable to get their way so after about an hour of digesting, the market began to lift up into that 1067 chop zone.  I though we might just hang there for the rest of the day, happy with a bull victory of holding 1060.  Then the market broke out  and hit the bull goal line at 1072/1073.  With the strength we hit 1072 I was fairly sure 1080 was next.  So we ended with a close at the high of the day.  Pretty bullish. And now we have made it around all the other time zones around the world and nobody has spoiled our party.

 

Today the bulls need to keep the momentum.. please don’t keep chopping my indicators!.. On the downside 1072/1073 must hold and that is the resistance downside for any attempt to summit above 1100.  That shelf area around 1079/1080 is interesting and I will use that as the first line of resistance for the bulls.  With the gap open any fade should honor that.. if it breaks watch for 1072.

 

Upside now, 1089/90 is critical.  That was the line that failed last Friday and took us down in the most recent leg.  If we climb back up and over 1090 and can hold there into the close the bulls will have another day under their belt and have regained the ground lost on OPEX.  The ultimate goal to get any party started however is the breaking of 1100.  Should we get there today watch 1103/1004 for confirmation that we are breaking out.

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52 Week New Highs

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