Bears in the house of pain

Man, the bears must be feeling it today. They nearly had some momentum going when the market turned down after the first hour of trading. That took the SPX to a new low for the week (1215), but then the market found its footing and slowly started to climb.

When the SPX finally topped 1225 (last week's high), I think that a lot of stops went off, and the market quickly rallied past 1230. That's great action. The only think I still want to see is the SPX take out 1233, since that was the high from early October. That would leave a higher high in the charts, and bolster a rally to new highs.

The action today of a lower low and then a higher high versus yesterday qualifies as an LROD (large-range outside day). This is very positive technically, and it also came on higher volume vs. the previous trading session. As such, I remain bullish and heavily net long. I would trim stocks if they look too extended, but I would also look to buy any pullbacks.

Have a great night--