The iBCMâ„¢ is BULLISH, with all three of my indicators being bullish. Today’s Daily Buy Strengthâ„¢ reading was 3x stronger than the Daily Sell Strengthâ„¢ reading. My Overbought / Oversold Oscillatorâ„¢ is in OVERBOUGHT territory

Notes:

• Considering that we only rallied 9 points on the S&P with light volume, the iBCM Daily Buy Strengthâ„¢ had a medium-strong reading

• Currently the most broad-based rally we’ve seen in 12 months. During the last rally, from 4/4/2008 to 5/20/2008, 62 out of 239 sub-groups went up > 10% in the first 2 weeks. Since the last “bottom” on 7/15/2008, 114:239 sub-groups have gone up > 10%. That is significant.

For the last year, small groups would outperform the market at large, but the rallies were not broad-based among many sectors. For instance, I can remember that in 2007, foreign stocks from VIP to CHL ripped higher, and that internet stocks worked. A few months ago Ag, Oils, and Chemicals were the only things that jammed higher.

The difference now is that a LOT of sectors are working, even [shudder] banks.

The market is bullish, though I would not be surprised to see us test this upward trend line (buying op), as I don’t think the bears will give up without a fight.

Additionally, udging from my Natty Ice Lightâ„¢ Indicator, we have probably another 2 weeks of rally time, which will also put us conveniently close to a critical test of the 200-day MA, which I expect to fail.

[I will insert the pic when it finishes calculating]

Of course it will be great to see how the market reacts to the UBS news. A sell-off and test of the uptrend was likely anyway, so perhaps this will serve as the catalyst?