Triple top chart formations can be quite bearish - hence many eyes were watching what would happen to the Dow Jones Transports. In the past week+, this triple top has been broken to the north, with that strength in airlines we mentioned Friday surely helping the case.
While perhaps a throwaway item for some, to the Dow Jones Theory crowd the transports confirmation is very important.
Stock market rallies, confirmed by both the Transportation and Industrial Averages, penetrating to new highs, with declines failing to break below previous lows, indicate a bullish trend.
For myself, I think the Ben Bernanke Printing Press Theory supersedes all other theories, but whatever....
I am expanding my index long exposure now that S&P 1112 is breached; when and if S&P 1120 is broken I expect fireworks.