A Perfect Backtest

Today some clarity appeared. Notice the perfect back test of the trend line. Once it was completed this morning, the S&P ramped higher.

This likely means that the megaphone pattern is dead. It also means new highs are possible. Just how likely is anyone's guess.

Volume is anemic, but that's just fine for my purposes. A new high on anemic volume would likely turn out way better than the megaphone scenario anyway. It just means it might take longer.

Both the Dow industrials and the transports made it above their March 3rd highs. The S&P will likely confirm tomorrow. If it doesn't, there may be trouble sooner rather than later.

There are gaps at 1320.02 and 1343.01 on the S&P cash. I suspect the first one will get filled tomorrow. Window dressing is alive and well.

I will be buying and selling at extremes until conditions change.