Stock Indices Rally Over 2%

Stocks rallied again today making this the 5th consecutive day of higher highs and lows. As you can see in the above chart the downtrend line has clearly been broken and a new high for the month was made today.

Many of the indices were up over 2% on an increase in volume. Like I said over the weekend, everyone was bearish at the lows which made me feel confident that a rally was just around the corner.  First upside target will be the 50 day moving average for the S&P. 

The only thorn I see for the bulls at the moment is that the financials seem to be somewhat lagging. The brokers and banks are struggling to test their highs for the month so it will be important to watch the BKX and XBD.