SPX Daily Chart - 28 March 2011

     In my last daily posting I stated that the bulls; if they want to show they are serious in rallying this market, need to show us a qualified break of the alpha-delta trend line (downsloping dashed red line). Last Friday the market closed above that line. Did yesterday's action qualify the break? Yes.
     In analysis terms, the implication of this is two fold. One, if the current 'y' pulse is not complete then we should now expect an assault on the next target level of 1332.28 (shown on the chart). Second, when/if the current 'y' pulse is complete, the next downward move ('z' pulse) should result in a low that is above the March 16 'x' pulse low.
     In practical terms, the daily chart remains in a bearish mode and hence there is no need for me to adjust my allocation mix which stands at a +50% reading. What would turn this chart bullish? At this time it would take a qualified break of 1345.5, and I don't expect that to happen within the near term.