The last few weeks the market had formed the last piece of a head and shoulders pattern and looked destined for lower prices, but a couple of factors during light summer trading allowed the bulls to prevail in the tug of war. GS strength and Intel earnings provided catalysts for the market to break the bearish patter to push higher. Yesterday the market was particularly strong, after a big gap up we were unable to fill the gap and the market took off. Now, a rest or small retracement could come in as we digest that move. Big cap tech is hard to buy right now and somewhat unpredictable as GOOG is set to come out with earnings today. RIMM has the most room to the upside out of the group. JPM earnings were better than expected and the stock, along with others in the sector, has poked its head above the upper trendline of a descending channel. Takeover chatter in MOS has pushed the stock four points higher this morning, if no news comes out it could provide a good fade.
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