Today's high fell just a few points short of the 3/1 close. We ended the day with the second highest close ever. Breadth was +65%. New highs expanded again to 296. Volume was even higher then yesterday.
The futures easily cleared yesterday's resistance. This is the third trip above the 2385 level. The other two times did not last long.
The green count actually dipped slightly today which seems a bit odd. Notice the big negative divergence in the intermediate indicator. That will be important if the market ends up turning back here.
SPX is retesting of the 3/1 high. Is the 2400 level still going to be resistance? I would think the bulls would make sure SPX gets to 2400 in the next few days just to see what happens. Since this is the third test in this area I would expect a bigger pullback if the market fails to break out and move higher. Whether we go significantly higher or not likely depends on how investors in general feel about the earnings picture. I heard Bob Pisani talking about a number of companies raising full year guidance. The trouble with this kind of reporting is we don't really get the full picture. Of all the companies reporting so far how many have raised full year guidance versus lowered? It is really what investors think will happen in the next couple of quarters that will drive price.
Bob
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