Financials Come Back From the Brink...For Now

 Big bounces int he financial sector, credited to C reporting earnings this morning, was the primary catalyst for today's rally, but weakness in the dollar also helped, and notably oil made another big move. 1180, which I thought would be near the top of this rally, has decisively fallen, and now 1185 is the top of the range, which is moving up slightly. volume was a big drop from Friday, but still good, and even with a pullbback here, the market is in bullish condition.

 The Nasdaq, despite some relative weakness today, has resumed leadership and the next point of resistance is at the April high. We have a problem, though: the market is catching on to AAPL, again reporting blow out earnings, but down nearly 6% after hours. Combine that with IBM, also reporting and down 3.5%, and the market is going to be under pressure tomorrow.

 IBM is one of the more influential stocks on the Dow, which is price weighted, so this should take a hit tomorrow as well. However, longer term, the price relative line is in a slight down trend, so unless that changes this is a bullish indication as well.

Here is the good news for the bears: the Russell 2000 is dragging again. watch that price relative line; I suspect if that horizontal line breaks we are headed into another correction.

Whover is pulling these "flash crashes" is either getting very careless, or is taunting the SEC. SPY is the most heavily traded ETF in the market, but at precisely 4:15 (ETFs trade until 4:15, for reasons I don't know), this dropped nearly 10%. The NYSE is giving everyone a do-over, although they didn't say at what price, but apparently all tradeds executed at 4:15 are being cancelled. It's a good thing we have those circuit breakers that will stop trading on a 10% drop, thus insurig that future flash crashes will be 9.9%.

I suspect today was mostly shorts covering in the financial sector, which took a severe beating last week. It is now the tech sector's turn, as AAPL's balance sheet games aren't saving them anymore.

I will have the new highs update shortly.