April Fooled

Wednesday the market gapped down to the 780 mark and then quickly rallied all day--led by banks--to reach highs of the day up around 810 to close the day out. This market continues to impress traders like myself although it is on low volume. You still can't ignore price action like this. When a market gets bad news and reverses to close at the highs, it's telling you something. Of course we have the anticipated news of mark to market accounting reform coming Thursday and thus the banks are being bid up ahead of this on the rumor, so they could sell the news.

Specifically the pivot on Thursday is 798.50 and price is in the low 820s this evening. The futures are rallying nicely right now and looks to be pointing towards a gap up. Of course Thursday's trading is sure to be data and news driven so be careful but I have an upside bias above that pivot and you can even call it 800 since the pivot is so close to that critical mark we have been wrestling with. If we get over 830 then I think this market will take off and we could be looking at 850 very fast. I will be watching the 15min chart intraday as always to determine the trend.