S&P 500 close = 1093.08

Signal = BL/L

Position = N

I am making a little change to my signals. From hereon, the "Signal" will mean what the objective signal is at the current time. It will not reflect my subjective viewpoint. Instead, the "Position" will reflect where I stand. In other words, the market could be showing a long signal but I may be neutral in my position as I am as of close today. The reason for this change is that I want to separate the objective and subjective portions of my analysis.

So, today the markets pushed higher through their 20 DMAs. All except for the Russell 2000 closed above their 20 DMAs. In fact, the Russell 2000 is showing a lot of weakness relative to the other indexes. Its 20 dma has crossed below the 50 dma which usually means their will be more downside in the near future. It will be interesting to see if the Russell is leading the market. The other indices may follow suit, but don't bet on it just yet.

The S&P 500 closed 8 points from its high for the year. The DOW closed at its highest level for the year. The NASDAQ is about 37 points from its high for the year. I am not sure what to make of any of this, but one thing is certain and that is the fact that the weekly, daily, and short-term trends are still pointing up. Until that changes, the bulls are in control for now. People have been talking about this latest rally lacking volume. I think that is a very valid point and something to keep an eye on. However, don't bet on short positions until we have a break down on at least the shorter time frames. The levels to watch for tomorrow:

S&P 500:

1101 - year high

1065 - most recent significant support level

Russell 2000:

593.5 - 20 DMA

589 - minor support level