The SP was higher by 49 on the day forming an island below the 50dma and almost reaching the key 1250 level. If 1250 is taken then the next level will be the 200dma at 1262. The market is very short term over bought advancing 90+ handles in three days. Expect some near-term exhaustion at the 1250 level but keep in mind that the overall intermediate-term condition is still OVERSOLD (more below).

NQ futures were higher by 83 on the day and settled above the 200dma. The pattern is similar to the SP in that the huge gap on Wednesday left an island below the 2250 area. The Shorts are trapped and upside down.

The 10-day Trin at 1.53 remains oversold. While the very short-term price action is overbought the market still has inherent upside energy until the Trin normalizes.

The put/call ratio did not record a climatic overbought reading.

The BKX was the top gun on the day up 7% on the day. This is a very strong impulse but using the 7/11 analysis, price will need to consolidate before making following through.

The XAU was stronger than the market which of some concern because of the defensive nature of the sector. Price did close above the 200dma. Note that this is a Seeker price flip.

The OSX did just what is needed and covered a great deal of upside range getting closer to the H & S neckline. The pattern is still in play.

The SOX was a little stronger than the Naz and settled above the 50dma.

BTK was about as strong as the Naz so there is nothing new technically.

Gold was strong fueled by dollar weakness and was much weaker than the equity averages.

Oil settled above the $100 level and remains positive.