Happy Anniversary, Mr. Market

Today is the 1-year anniversary of the market bottom, when the S&P 500 touched 666 in what some are calling a 'generational low'. Today the S&P stands some 70% above those levels, thought still well off its previous highs. The S&P would have to rally another 35% to get back to its previous highs.

Tech is again outperforming so far, after Texas Instruments (TXN) raised its growth expectations in its conference call last night, and Cisco (CSCO) said it will be announcing a major technological advancement.

Asian markets were higher overnight, while Europe was bit lower this morning. Analysts at Fitch kept its negative outlook on Portugal's AA rating after the country announced on Monday new austerity measures. Its hard to see how Europe is going to grow with all of these austerity measures being adopted.

The dollar is higher today, which is weighing on commodities a bit. Oil is a little lower near $81.25, and gold is also lower to $1117.

Among industry ETFs, transports are leading (+1.13%) with a fresh breakout today in the IYT. Real estate is also doing well (+0.52%), while gold miners are lagging (-0.91%).

The 10-year yield is flattish near 3.70%, and the VIX is a touch higher at 17.87.

Trading comment: The market remains overbought but refuses to give up recent gains. This is a positive sign, and if we can work off this overbought condition by simply trading in a mostly sideways consolidation, I would expect more upside to follow. The S&P needs to get above 1150 to breakout to new highs for the year, so that could be an area where the market runs into some resistance.