It was definitely a positive day for the bulls, technology and small caps outperformed and closed strong. It is also a demonstration of the underlying buying power that the bulls were able to hold a triple gap up this morning right into the 50 day simple moving average this morning at around 1303 on the S&P500. Today felt like a flash back to the many low volume V-ish moves since the March 2009 bottom.
Odds probably favor a gap fade tomorrow morning if we gap up again. The important thing is that we hold steady and not roll back too far during the next few days. If we can stay above 1280 and consolidate a bit more, then there is a better chance that the bulls will be able to make a run.
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