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The powerful action on Tuesday was accompanied by strong market internals as the number of advancing issues exceeded the declining issues by a wide margin. The NYSE A/D Line has completed its triangle formation, suggesting that the correction is over. The A/D line needs to move above the June and May peaks to confirm. There is key resistance at 1130 and then at 1150. The A/D line does suggest the market will move to new highs with a Fibonacci target at 1280. Look for a pullback to the 1055-1065 area.
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Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
