While it was a strong up day we did not break any new ground. We still have lower highs and higher lows. Breadth was +76% which is decent, but not outstanding considering the size of the up move. New highs expanded all the way to 14. Yeah that was sarcasm. New lows came in at 37. TRIN was an extremely low .41. That is almost freakishly low. One day high, one day low. Mixed messages just like everything else.
The futures have made contact with the 50 SMA. That could be a resistance point. Hard to say. There is plenty more room up to the 100 if the bulls are willing.
The breadth data has positive crossovers across the board. We have worked off the extreme oversold condition in the McClellan oscillator. In fact it is almost in overbought territory. That can be a problem when the market is making lower highs. We will have to watch closely if the market rolls over again.
On the green/red bar chart the bulls still have some work to do.
Neither the bulls or the bears are really in control. They keep fighting back and forth. This is very evident in the intraday price action. These big gaps have to be unnerving to money managers. Will the bears strike back tomorrow or will the bulls keep things going? Beats me.
Bob
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