Technical Picture - Stocks Surge on Positive Data

The bulls were encouraged by favorable data out of China overnight and the best ADP report on private sector job creation in three years. Equities gapped higher on the open and rallied into midday breaking through the two week bearish flag top to end the session well above the 1200 psych level. Volume lagged so the new uptrend is unconfirmed. What a difference a day makes!

The rally was broad based with all major sectors participating. The leaders were coal, housing and steel... Tomorrow's economic data includes jobless claims as a lead in to Friday's all important employment report.

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RIMM stalled and reversed after filling the May 19th gap as depicted on the daily chart above. Volume was above average but less than yesterday, so it's too soon to tell if this is distribution. Keep a close eye on it tomorrow as the 15 minute timeframe looks like it has carved out the left side of a H&S top.