The S&P 500 overnight burst to new highs for 2012 on decent but not spectacular volume. The rally likely has legs in the near term. There is no more bullish indicator than fresh highs following a period of consolidation. Yes, I was bearish going in to last night, but these new highs strongly suggest it is time to turn the page. What's next?
The ASX 200 is lagging, but it is probably worth focussing on the up trend channel I showed earlier in the week, rather than the wedge I had been showing for some time. A re-test of the 2012 highs appears on the cards for coming weeks. Chart includes after hours trade, currently 4366, a jump from yesterday's ASX close of 4313.