After dispatching last week of the Fireflies, Columbia Southern, the Blue Diamonds and then Columbia Southern again in the Championship game Saturday morning, things can finally get back to normal around here. Yes, Grant Financial shocked the softball world here in Foley, Al. by claiming the title for the third year in a row going undefeated through the tournament!

It was almost as shocking as the move in the last few minutes Friday and then the gap up that stuck today. This was a breakout of the consolidation pattern we'd been discussing. This price action is clearly bullish and suggests there's more to come....maybe much more.

The S&P is just below it's 200 EMA of 943.82 and bettered its January highs. Volume was rather light for such happenings but I'm actually not surprised.

I expect participation to be lighter than prior cyclical bulls this decade as a number of retail investors have already sworn off stocks for their lifetimes. Just ask some of your friends. The next decline may finish off who's left.

But in the meantime the market could move substantially higher very quickly as under invested "moronic" institutional investors rush in to bring their asset allocations up to their benchmarks. Yes, I called them "morons", just to be clear.
 
Although I believe we're headed higher, we have to be on the lookout for a failure here at the 200 day moving average. I'd be foolish if I didn't consider such a possibility and alert you to be on the lookout for it.

My best guess is that a breakdown would actually be a false one and the market would go on to new highs after recovering its legs.

Tomorrow will be very important.