If the current rally levels hold, it will improve the $SPX chart to neutral, removing the "bearish" designation that we have had on it for weeks. In fact, if $SPX can close above 1310, we would upgrade our classification of the chart to bullish.
The rally is being backed by technicals that are turning bullish, too. $VIX is now at 17.41, below the 17.70 level that we said would constitute a buy signal for that index, too. As with $SPX, this move in $VIX breaks the bearish trend that was in place.
Breadth is strong again today, so the breadth oscillators are moving deeper into overbought territory...
To read the rest of Larry's Market Commentary, subscribe to The Daily Strategist Newsletter.