Good Earnings Reports Spark Rally

As I mentioned the other day: This week will be the earnings cycle with big names in the tech sector and the banking sector that are likely to set the tone for the rest of the earnings period. The names in the line up are GS, INTC, CSX, NVLS, XLNX, GOOG, HOG, IBM, JPM, NOK, BAC, C, & GE most likely a pivotal week in the markets.

Well Goldman Sachs (GS) & Intel(INTC) have so far been the catalyst to sparked what looked like a break below the necklines of several index Head & Shoulders patterns. Also, I noted that we were looking at lower highs & lower lows...that too has been negated. Not only was several necklines major support so were 200 moving averages on the indices. The transports have been strong as well as bullish words from Meredith Whitney on the banks.

Dow Jones Industrial Index ($DJIA) chart

S&P 500 ($SPX) chart

NASDAQ Composite ($COMPQ) chart

Russell 2000 Small cap ($RUT) chart

Dow Jones Transportation Index ($TRAN) chart

Wilshire 5000 ($WLSH) chart

So...the trend has now turned bullish and the next hurdle is the recent highs, JP Morgan reports as well as Bank of America, lets see how the consumer weighs on these companies. As for now technology is driving this market...the biggy I'm look towards is Apple next Tuesday.