Earlier in the week I highlighted a couple of levels to watch out for. We broke 5618 on the Dow Transports earlier in the week, from a Dow theorists perspective we would need a break to new highs in the Industrials now for confirmation of the bullish move. The S&P futures are indicating breaking above the critical 1474 level after better economic data released in the past hour. From how Europe has acted on the move, it appears defensives and miners are the biggest movers which feels very much of a squeeze, financials notably have stalled in the past few sessions despite strong earnings from US peers. The Tom Demark call of a high of 1492 odd still looks on the cards and the close tonight will be key, if we fail to hold onto gains and close below 1475 the set up would become somewhat bearish……good luck, Bally.

 

Philip Ball | Sales and Trading