I wouldn't exactly give the "all clear" on the S&P just yet, but prices did manage a new closing high...
Ditto for the DOW...
For all the negative talk about commercial real estate and their standing as the next shoe to drop, this chart of the IYR appears to be telling a different story...
If the markets are going to bounce higher from here, it would certainly help to get a little participation from financials and energy. Financials continued to lag most of the session before perking up a bit into the close. On the energy front, perhaps USO has found support at the 200 day moving average...
For a change, volume increased on the move higher today and this should come as a welcome sign for the bulls. Additionally, some of the recent breakout candidates we've highlighted are moving up in heavy volume. A few examples include WBD, RHT, INFY, and HEAT. While others are retesting their recent breakout levels... EPAY and RAX. This is healthy action, but I wouldn't load up 100% invested on the long side just yet. While prices have made another run to the top of the recent range, the 50% fib retracement at 1121 on the S&P lies only 8 points above and is likely to act as resistance on a break to the upside from the recent consolidation. The distribution count also stands at 5 for the Nasdaq and S&P, while the count is 4 for the DOW. This should serve as another reason to remain cautious.
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