There will be no recap tomorrow as I will not be around to catch the market action. Recaps will resume on Monday.
Even with the negative earnings report from Alcoa (AA) the market had another positive session today, pushing the indices to the upper limits of their recent ranges. Mark from Fundmymutualfund recapped an excellent post from the NYT citing declining imports. Worth a read.
A market moving up despite the overbought readings is bullish. The lower volume is a concern but it has not stopped the market from moving higher before.
Looking ahead the big question is do we have enough momentum to claim higher highs and break above key resistance before this rally stalls out? At this point a pull back to say the 50 MA would be welcomed.
A S&P break above 1230 would almost certainly force the average investor to become bullish on this market and start putting cash to work. These price swings are so quick though it is certainly tough to confidently put capital to work.
Time to sharpen those watch lists and keep an eye out for stocks basing out. Stay frosty out there, keep an eye on earnings, and I will see you back here for more market recaps after the weekend.