The Naz led all markets with Tech leading the way. If earnings from the Tech sector continue with the same veracity as today, it will force the Bears back into their cave. The thing is the Bears still believe they have a lock hold on this market, and when we have an over abundance of confidence (sentiment readings still show an inverted Bull/Bear percentage) that usually leads to a reversal. So, if the Bulls can keep the pressure on, it will force them into hibernation, due to the volume of shorts that need to be covered. The vacuum that will be created will create a chasm, allowing the Bulls to take the market higher. You be able to hear a big sucking noise, it will be music to our ears. Maybe you’ll be able to purchase it on iTunes later in the week!
So now we have 2330 as strong support on the Naz. Todays action should allow the Bulls to hold strong, even with a few bad earnings reports. It’s up to the Bulls now to take control. Should they fail, we’ll all need to run for cover. There’s still work to do on the Dow, so by taking out 12,750, we will have turned the corner and have started a new uptrend.
-zach bass
