As we can see, stocks broke above their overnight range in early trading, with solidly positive NYSE TICK. That led us to take out yesterday's high, only to pull back into yesterday's range. Now the key is seeing whether we can sustain strength above that 1145 area that represented yesterday's high. Failure to do so will target a move back into the range defined by today's high and the overnight lows.
Thus far, we're seeing buying come in even after modest weakness, as many players are anticipating the move to new bull highs. That is keeping us making higher highs and higher lows day over day, supporting the bull move. We continue to see bullish sentiment in the CBOE put/call ratio, though not quite at yesterday's level. That is a contrary indicator that has me cautious about the upside near term.
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