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08/29/11: Gap-up Breakout Leads Trending
BAC gap-up, sort of island reversal, leads BKX which is the trending motor of SPX.
SPX/NDX gap-up open, followed by intraday consolidating in narrow range, made the slight breakout at close. It's a short term bullish sign.
There is no strong resistance on the up road at the moment. Short queeze on short-term trades and forced chasing high will fuel the short term up-trending for a while.
Such a reversal, if confirmed by a modest gain of tomorrow, or by a few consecutive narrow-range consolidating daily bars followed by another firm daily breakout bar, SPX/NDX of US market may put behind 1200/2200 for ever taking into account the massive destructive news of the past four weeks.
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