The Bulls Take Over At Last...

FUNDAMENTAL ANALYSIS
Stock market rallied strongly for a third trading day today as upbeat news and a halting oil price injects a good dose of optimism into the market. Investors headed into this new earnings season with a lot of pessimism which was quickly eliminated as most earnings still checked in higher than expected. Seriously, I haven't seen this much optimism in one day for a while. Clearly, the bulls have been in charge since the market turned around on 14 March and are now roaring and rearing to go.

TECHNICAL ANALYSIS
Market rallied today as expected and today, we might see a new high made if the Dow breaks above the 12750 resistance level. Our ADX trend indicator has also turned up bullish for the first time since the 27 Feb dive. What I see now is a healthy correction completed followed by a strong recovery of the previous bull trend... Classic. The Dow and the Nasdaq composite are now back up in the short term overbought region and would not be surprising to see a couple of small pullback days before. Hang on for the ride to the stars.

Technical Chart By Worden Brothers TC2007 Charting Software
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