Upside follow through. Breadth was +62%. New highs expanded considerably to 322. SPX fell just short of 2300. This is a clear break out of the consolidation. R2000 has not done that yet.
The green count reached 60 today. This is the highest it has been since mid Dec. We have liftoff. The question is how long will the engines keep running. As I have been saying this braided pattern sometimes breaks with a fake out. If this is a fake out we should know very soon.
They paraded an endless stream of people on CNBC today telling us that if we were not fully invested in stocks we were missing out and it is not too late to climb aboard. I also heard we should not worry about the low VIX. Not a problem. They said it has been low for years and we keep going higher. It is true that the VIX has been low much of the time over the last few years. However, there has been no time where the VIX was this low and it was a particularly good time to buy. Maybe this time is different and the market just keeps rising from here.
A close by SPX back below prior resistance around 2275 would be an early sign of a possible break out failure. That event would likely lead to a break out below or at least a test of the late Dec. low. We know that can't happen so there is really no reason to even bring it up.
Bob
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