The market gapped up then traveled sideways all morning. A brief spurt in the noon hour took SPX above Friday's high. However, the afternoon saw some selling and SPX settled back below Friday's high. Breadth was very strong at +68%. New highs expanded some to 64. New lows dipped a bit to 38. The high came within .5 points of the 50 SMA. The close was a little bit above the resistance box. Now the question is can it stay there.
For the last week the futures look like they are slogging higher. Today's high was right at the 100 SMA. A slow and steady march higher so far.
The green count shot up 50 points to reach overbought levels. It is unusual to have such a big move. The question is will the bulls keep buying now that we are overbought again.
The market continues to grind higher. It has gapped up 5 of the last 6 days. R2000 has crossed its 50 DMA, but SPX and COMPX are still below theirs. April is one of the strongest months of the year for stocks and we have moved higher. The problem is we have not moved all that much and May is right around the corner. Coming off a double bottom formation like we have there should have been a flurry of buying by the big boys. This grinding action does not usually happen until we get near or at new highs. I think the bulls still have some more proving to do. Both SPX and COMPX need to get across their 50 DMAs and demonstrate that they can stay there.
Bob
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