Stockcharts came back up just in time, so today's post is a go. here we have a third day in a row of big gains for the indexes, although on shrinking volume, but none of that is relevant until tomorrow, day 4 of the rally attempt, which is the first possible follow through day. if there is a blessing in disguise in today's relatively low volume, it is that it will be easier to beat. The SPX has some momentum now, but it is also heading into the resistance zone, which is now dropping along with moving averages. The first hurdle will be the declining 50dma (here it is the exponential), but even breaking through that will leave plenty of resistance above. Tomorrow's NFP, if it is favorable (and how that will happen I have no idea), could give the market the juice to get through all this. If so, we are going to rally for quite some time. If not, expect another drop down to 1100, and possibly beyond.
We appear to be on the verge of starting a new bull move, of course with no knowledge of hw long it lasts or how high it goes. It could end as soon as before the open tomorrow, if the NFP really stinks, but expectations are not very high, so even a lousy report (but not as lousy as expected) can trigger a follow through day. Unfortuantely, there are not many leaders setting up in bases ate the moment, which leads me to believe it will be a short, sharp rally. Ultimately, the market is still range bound, and is going to have boatloads of reistance on the way up, so if the buyers don't come in big, we will probably crap out right where we have for the last 4 rally attempts.
I will have the new highs update shortly.