Just when it appeared the market was going to run into resistance and fall flat on its face once again, a bullish inflation number sparked the market to a big rally above resistance, possibly setting the stage for a summer rally.  Lets see how new found support holds up in the coming days, which would provide confirmation that the rally is real and not just a head fake.  The impressive thing about today’s move was the gap up, the breadth and the close near session highs with volume.  The bull may be ready to run.

It wasn’t long ago that the Nasdaq looked dead in the water.  Recently, with the help of a surge in semis, the Nasdaq looks strong and ready for a larger move up.  Surging above 3 major resistance levels with ease (50 DMA, 200DMA & downward trend line) in the last week is mighty impressive.  How it consolidates these gains will be just as important as the gain itself.  Does it pull back quietly and retest new found support around the downward trend line?