Rally after oversold conditions

As noted last week, there were deep oversold conditions and we got a very nice bounce back on hopes of debt crisis resolution. The Breadth indicators have also turned positive and now we wait for the break of July highs of 1346 and then ultimate Bin Laden high of 1370.

After the break of 1346, market might pullback to relieve the overbought conditions that will happen with that kind of price movement, something to be aware of before you fully back up the truck or putting tight stops at that junction.

After that, the dip hold confirmation will create a big bullish thrust and during that situation everyone should be making money.

Just remain aware this this is a news and earnings event driven market so trade accordingly.