Market May Be Getting Close To Another Breakout

The S&P 500 opened on a positive note this morning, but quickly turned lower after bumping its head at that 950 resistance level that we have seen over the last week or so. My comments this am are going to be a bit brief, as I have a longer piece coming up going into the SPX trading range in more detail.

Asian markets were strong overnight, led by commodity related strength. The dollar is higher today, which is weighing on gold prices, but oil is bucking the trend and is trading above the $71 level. Energy and materials stocks are mostly higher, while tech is taking a breather and trading lower.

Home Depot (HD) said at a conference this morning that the worst of the housing correction is over. They also slightly raised their Q2 outlook. This is good news for the real estate sector, although the group is trading lower on the day so far.

The Fed's Beige Book is due out this afternoon, which could move the market depending on if there are any surprises. The 10-year yield is higher at 3.92%; and the VIX is higher at 28.75 after a big drop yesterday, supporting the bullish thesis on the market.

I'll try to have more tidbits of CEO comments coming out of the William Blair conference as the day progresses.