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The gains in the stock market on Tuesday were impressive as it was clear to most analysts by midday that the very strong advance/decline (A/D) ratios would push the S&P 500 above 1130 on the close. This action has likely caused many of the skeptics, along with the summer gloom and doomers, to start covering their short positions. The McClellan Oscillator is rising and is likely to move to overbought levels (+250) before we get a pullback. The S&P has next targets at 1157 (as discussed earlier this month) with Dow targets at 10,926. The Summation Index pinpointed the summer lows and still looks strong.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
