Transports Make a Bullish Break
It clearly supports our case that the market is about to breakout of a range between the 1,085 and 1,110 on the S&P500 that its been stuck in for the last 5 weeks or so. A clear move in any direction after such a consolidation will likely be very powerful. Possibly running all the way to 1,200 before stopping. Confirmation tomorrow will be key. As you can see from the below chart, the SP500 has made a clear new high close and any run tomorrow could easily post a new intraday high as well signaling a clear breakout following the Transports. A close above 1,120 sinalling the all clear for computer programs and hedge funds.