The market averages surged higher yesterday. So we will see some consolidation. It will take some time to digest those gains. As long as the market stays above 13000 in DOW, 1365 in SP500 and 3000 in NASDAQ, we are in bull. A sharp revesal below all these levels might trigger selling and a temporary correction. Overall the macroeconomic picture supports a bull market.
The NYSE composite fell 0.6% and the S&P 500 0.1%. The Nasdaq rose fractionally while the Dow Jones industrial average added 0.1%. In sum, the breakout produced a number of positive developments especially if continue to see further upside follow through and no quick reversal of fortune as the historical studies are now suggesting.
Some good reads –
Fed shares stress test results (ST)
Eurozone formally approves Greek bailout (EU)