I noted yesterday the apparent trading channel of $2040 to $2090 for the SPX. The bulls pushed the market higher today and SPX closed up $9 at $2091. So SPX is right at that resistance level that has been so resistant for the past few weeks. But RUT pulled back $4 to close at $1259. So I am not convinced we have seen a break-out just yet. An open and close above $2090 tomorrow would be encouraging, but the true confirmation of the bullish trend continuing would be a break-out to a new all-time high above $2117. Some of the large banks and Goldman Sachs will be announcing earnings next week. Perhaps that will give the bulls the ammo they need to push higher. We'll see.

Watching the market trade higher on increased volume would be a bullish sign - one that didn't occur today. Trading in the S&P 500 stocks was flat with yesterday at 1.9 billion shares, below the 50 dma. Trading volume was flat on the NYSE and only increased 3% on NASDAQ. Traders are not concerned about the bottom falling out anytime soon; the VIX dropped another point to 13.1% today.

The weekly unemployment claims report was a mixed bag today. Initial claims rose 14 thousand to 281 thousand, while continuing claims dropped 23 thousand to 2.3 million. No significant economic data is due out tomorrow; will it be a slow day in the markets or will it surprise us? My guess is that traders will sit on the sidelines waiting for the earnings announcements scheduled for next week.