The bulls got hold of a market at a key support level last week, riding it all the way up to resistance at 2064. Stocks likely to pause at this level, or slightly pull back. News from Greece this weekend likely to sally the positive Friday US Jobs report. Underlying market conditions are decidedly improved from last week, with most of our indicators turning green. The stubborn long term Chaikin trendline continues to keep price abay, and that's the confirmation signal we'd look for if there is to be a break of this months old sideways trend. We've been buying uptrending stocks with strong industry groups, positive money flow, bullish power gauge trends, and positive relative strength. We particularly like "personality change" stocks where the market agrees with power gauge. That said, we've been whipsawed a ton so far this year producing a series of small losers. We're staying with our system, however, expecting outsized gains from best-in-breed stocks when the market finally breaks out. We continue to sell call spreads above the market as a portfolio hedge, in case the market goes in the other direction and breaks down through support.
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