I thought today's action in the market was very interesting. We continue to follow the script almost perfectly for the highs we set last October (almost to the day). In fact it is almost to perfect which makes me nervous. You continue to see the normal same window dressing going into the end of the month which is probably adding to buyer interest. Also I am sure it it is at the forefront of every traders mind what happened April 1st and May 1st. Will the first trading day in June offer another gift? In the last two day volume has been non existent. I mean it is even low based on the last three months. Volume is all but gone. You also saw a sell off once you approached that 1410 level today. The financials have not participated in any bounce until today. They led me the market higher today. If your a bull those financials have to regain leadership and put several positive trading days together. The ABX indexs seem to be breaking out of their trading ranges they have been in the last two months to the downside which is not good. You also have more downgrades by S&P and Moody's which is going to cause problems for banks. If your a bull the one thing you can grasp onto is the Yen. It has fallen apart the past week meaning that the carry trade is probably coming back in favor.
Anyway the next couple of days will be interesting. I continue to think we have hit the interim high point and in the next couple of weeks will be testing 1350 instead of 1450 but if the market bust through 1410 it may mean the bulls are around for some more fun.