Seasonality probably has something to do with it but no matter how you slice it the bottom line is the market is holding up well with little resistance from the bears. What is most interesting is how many key sectors are breaking out ahead of the S&P 500, due mostly to financials.

They are disliked but are starting to look better on their daily charts over the past few days. Small caps, mid caps along with the NDX/NAS combination are all breaking out over the past few days. All this with the PowerShares DB US Dollar Index Bullish (UUP), the dollar, right at the 23.20 breakout. It has gone higher but the market has stopped going down every time the UUP ticks up. A pleasant change of character that is good for the bulls.

The market did gap up ever so slightly today but spent the majority of the day moving in a very narrow range once it reached its highs mid morning. Again, many will say seasonality is what's really keeping it up but I'll come back and say, what held it up the past several months!? The market has a bid. Many sectors have made the breakouts thus the message continues to be the same. Stay with the trend.

Playing against it will make your financial life a lot more miserable. If the S&P 500 joins the other sectors by breaking out over 1119 with some force, it would not be in anyone's best interest to be short just about anything. No guarantee it'll ever make the move, but I like what I'm seeing technically, even if we pull back a bit first to unwind the overbought oscillators on the 60-minute time frame charts.

Peace

Jack

Jack Steiman is author of SwingTradeOnline.com ( www.swingtradeonline.com ). Former columnist for TheStreet.com, Jack is renowned for calling major shifts in the market, including the market bottom in mid-2002 and the market top in October 2007.

Mr. Steiman's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Steiman's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.

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