The market didn't do to much today, in fact the volume sucked. The 92.00 area seems to be support and there is resistance around 93.60 area. Not to mention there is a Fib Retracement above the 93 area. So the path up will be met by some selling pressure.
Another reason why Short-term the market is bearish. According to Mr. Dow Jones we need transports to rally as well. That doesn't look like it will happen short-term, IYT is moving up to some over-head resistance. It failed to break out above it today, and has moved to over-bought territory.
This rally is not being lead by Financiald. In fact XLF is hitting resistance at its down-trendline and 50 MA. Until Financials break out, I can't see the market rallying much further, without taking a short breather.
What is leading the market is Obama stimulus plan related sectors.
One sector is Energy, look at this break out. Broke through resistance, today is showed strong volume as well, it still has some room to run before it is overbought as well. It could have support around the 50's if we pull back a little.
XLU is another sector that has broken out during this rally. Although it looks like its due for a pullback short-term.
