Markets managed to maintain a 6th positive day yesterday, quite a feat for an expirations week, particularly in July.

Earnings continued to surprise with CSX upbeat outlook yesterday.

We are right at the 50 day moving average of the SP500 and quickly approaching the 200 day, the most important psychological level.
Another day like yesterday and we could be above it.

For those who have hedges in place, we will be looking to remove those hedges above 1105 .....Should we make another retracement we would remove them down around 1050. I don't see any case for a drop below that level in the forseable future.

The "Death Cross" of the 50 day below the 200 day moving average actually looked like a market reversal point and re-establishing that level will be another important milestone for the bulls.

Shorts look like they are going to continue to be pressured to cover today and that should provide a positive bias despite expirations week.