Support Test Success

We are very tempted to become bullishly, if not irrationally, exuberant after yesterday's strong showing. The QQQQ bounced of the 20-day average provided in this morning’s report – note that it actually traded higher than Wednesday's highest price, turning the corner. At the same time the SMH broke out to a new high, crossing over the heavily defended $35 mark after failing to follow through on its first attempt. All eyes are now on INTC to see if it will give bulls a boost with strong earnings. The charts don’t lie, but they need follow through before the word “irrational” can be deleted letting exuberance stand alone.