A euphoric pop on the open marked an early high that could not be equaled on numerous attempts to rally throughout the day. But the final hour saw buyers emerge from nowhere eager to hold long over the weekend. Meanwhile IBM, CAT and WMT are streaking up the charts. Technically Speaking But enough about economics that make sense while equity markets do not. Let's try to figure out where we go from here until May 15th FOMC meeting, our next landmark to reach by navigation.
Most indexes are in great shape or at least improving to the bullish side.
The Dow's close above 10,800 is significant for two reasons. That was a major point of resistance for a long time before, and it marks a higher high than the April 18th Fed surprise close. If a picture's worth 1,000 words then lets save ourselves some time here. We see where the Dow made a very nice Bull Flag formation on Wednesday that broke out to confirm and walked its way up the ascending trendline dating back from April 3rd. Still trading 100 index points below first overhead resistance but seems about to hatch from its latest bull flag.