Big Move 3/10

The market made a nice move today, with most major indices up over 6%. The S&P ended up breaking out of it's trend channel late in the day. We'll see if it can sustain this rally or if it was another head fake. As I've been saying for a while, 741 will be a big level for the S&P to get above and hold. If it then this rally could have some legs.

S&P 500 (60 minute) In terms of breadth the market had a very good day. About 90% of the Russell 3000 was up today. The interesting thing was that there was no dominant PV Relationship. 1489 issues were PUVD, while 1224 were PUVU. I would like to have seen more dominance from the Price Up Volume Up catagory. We had a similar rally similar to this one (although the rally in October was larger) that only lasted for about a week or so. On the day we bounced in October we had over 2,000 stocks that were PUVU. If the rally wants to hold I'm all for being bullish, I'm just having a hard time doing so right now.

PV Relationship

Trader Mike pointed out this chart on his blog.

BKX Bank Index

Even though the Bank Index was up 15%, it only made it to the middle of it's trend channel. He said he expects the sellers to come back into the market towards the top of this channel. With the structure of price and it's moving averages, I don't see any reason to try to jump on this rally.

Lastly, lets look at the weekly timeframe. If the short term bottom put in this week does hold, there are some positive divergences that would be very bullish for the overall market. We have had lower highs in the VIX and the NYSE New Lows. If the Summation Index holds above it's prior low, that would be a very bullish sign.

S&P 500 (Weekly)