It was a weak day in the markets today, weaker than the price action suggests. Volume was light, however, so no bearish implications here. 

We just have to wait for price to tell us what it wants to do. Is it straight up now or does it want to kick the new bulls in the teeth one more time first? Time will tell.

So be patient. A break out over 875 would look like a buy signal to me with a stop just below the breakout level. A breakdown to 800 or so would be a buy signal as well in my book.

One thing I've noticed that makes eventual new highs likely to me is the fact that the high beta NASDAQ stocks outperformed at the March lows and have outperformed as they've led the market higher out of those lows. That's a sign to me that there's enough liquidity to drive the markets higher. Some people think it's a bearish sign and that it means speculation has returned too quickly. We'll see who's right.

So tonight, just be patient and listen to what the market is trying to say.