I am about to hit the road again heading back to San Antonio but a few thoughts before I do.
First - the General Electric upgrade is ridiculous. Upgraded on the fact that the political pressure is decreasing to break apart GE Industrial and GE Capital. Maybe it increases the option value of the stock, I don't know, but it doesn't impact the future income streams of GE industrial or improve the credit quality of GE Capital. A hallow upgrade that is just absurd.
Second - XLF (the financials etf) is right at $13. This is back to the early May price. Financials did not set a higher price in June and have so far not set a higher price in July even as the S&P 500 has. To the extent that financials break $13 in a meaningful way, it would signal more bullishness ahead. Check out this graph. http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=xlf&sid=0&o_symb=xlf&freq=1&time=7 I am to much in a hurry and to lazy currently to place it in the blog. It is a six month chart of XLF. Notice volume peaked in early July around 11 and has been decreasing ever since even as the the etf has rallied. I don't consider that particularly bullish. Keep an eye on the 13 level.
Third - Today seems to be the normal end of the month ramp. Decently heavy futures volume so far with incredible breadth but very average to low cash market volume.
Fourth - So far commodities have not completely reveresed yesterday's drop. To the extent this holds, it will also be telling.
Fifth - Once we broke 945 in the S&P 500 it was almost guaranteed that we would challenge 1,000. Once again it is interesting we are coming up against this resistance point even as financials are coming up against its resistance point which is not a new high but simply back to the early May highs. There is probably a test, a failure, and then another test coming. That second test is what is important.
Sixth - Lastly, the sentiment is finally starting to change it seems to being uber bullish. CNBC this morning had Steve Liesman and others were barely able to talk out of prospects of the potential for a very strong economic recovery versus a tepid economic recovery. They were falling over themselves. The investor intelligence poll came out and bulls are 42.2% versus 36.7% the prior week. Bears are down to 31.1%. This is shifting rapidly though not at extremes just yet.