The bulls charged all day with breadth better than 7 to 1 positive and a huge move in the small-cap indices. The volume is very weak on this follow through day. Is the storm keeping trades out of action? The bulls broke through two key resistance areas at 119.60 and 121.20 on the SPY today and could lead to further gains. While Month end seasonality may hold us up for another day or two, but we are pushing very overbought levels while still under the 200 day moving average. If the bulls continue to push up without any back and fill action we could be setting up for an interesting short scenario into Friday’s job report.
