Big-Time Rally

The market closed at its highs today, punctuating a very strong day. The COMP outperformed today, rising nearly 2% on heavy volume, making it a strong accumulation day.

Breadth was also strong, and the Hi/Lo index on the NYSE rebounded from negative territory into the triple digits (+133). So there are lots of stocks back at new highs, and that is where we should look for leadership in this market.

All of the market's sub-sectors were up today, led by semis, which gained +3.4%. If you were long stocks, you pretty much couldn't help but have a good day.

The SPX spiked back above its 50-day as well as its 20-day moving averages. It is now well within striking distance of another new high for the year. If this occurs, it will likely lead to additional short covering.