Market Internals Impressive
07/08/2010 9:49 am EST
Stocks were impressive on Wednesday with the advances exceeding declines by a five-to-one margin. The major averages have cleared first resistance as the S&P 500 has rallied sharply from the 38.2% support level. The next widely watched resistance level is in the 1080-1100 area. The A/D line held key support from early this year and a completion of the triangle formation (dashed lines) would be quite positive. The McClellan Oscillator has formed a longer and stronger bullish divergence.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.