The bulls managed a 4th day of upside on average but better-than-expected economic reports. Cracks appeared mid-morning and the bulls were able to save the close. Breadth was decent, but there were some notable reversals in some recent leaders like AAPL and BIDU. There seem to be some support around the 1200-1205 level as we tested it yesterday and yesterday after hours. Some backing and filling may set up a buy the dip situation into a poor Jobs number or an Obama job creation rally on Tuesday. However we continue to push overbought while remaining under the 200 day moving average and the bears may strike when its least expected. Are QE3 being priced in and if the stimulus is less than expected will we go back to the lows?
