Posted on 01/17/13 - 02:25 PM EST
After the twin good news items today premarket there was a stinker at 10 AM in the Philly Fed. The S&P 500 came in but only very briefly and did not even fill the morning gap up. So all in all, we can say today the good news was embraced and the bad news ignored. That's a bullish sign near term. Also after the first hour the gap up is holding, a good technical sign. The longer the morning gap up holds, the better the bull case for today. As for the daily picture we finally see a clearance of that mid 1470s area which has been a headache aka Sep 2012 intraday highs. All this quicksand action has also helped work off the overbought conditions the market has been dealing with since the big gap up Jan 2. Here is an update on the channel the SPX has been traveling since mid November (with the exception of the massive headfake down late December) If you are a Tom DeMark fan the top end of the channel is roughly where he said this move would end.