Market Update - 7/22/2010

We have broken over the key decending trendline now, and it seems like we are ready to break out. The strong push up today has done some technical damage for the bears.

The bearish count is now completely out of play, and the primary count is now that this is Minor wave 2.

We should continue to have an uptrend to atleast 1113-1115 for this wave. 1140-1150 on the upper range.

1113 is a pretty key area of support.

We have the upper bollinger band and the 200daySMA both lined up there.

The reason I am still labeling this up move as corrective is because of the internals. With a strong 25 point move in the SPX today, the interals were just under 10:1. That is pretty weak for this big of an up move. To me, this is a classic short squeeze.

1100 and 1085 are the key pivots for tomorrow.