The S&P500 closed solidly above the key 50-day simple moving average and if we add back the dividend it’s even more impressive. Technology continued to outperform, led by some beaten down names. Bulls may keep squeezing with big POMOs and the potential for end of the quarter window-dressing in the next few days. On the other hand we have a compressed VIX and overbought conditions. The bulls are going to have some headwind tomorrow as RIMM is getting pounded after earnings, but if we can continue to hold the 50 day moving average the intermediate term probably offers more upside.
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