Evening Update

Cephalon, Inc. (CEPH)
If you are freaking out about CEPH's movement today you should know that it is in a monthly slim jim. Often a stock will drop 10-15 points before it breaks out. I will discuss CEPH more tomorrow. I have not issued an additional sell alert on it. (Only our sell 1/2 in the 82's)

Dow Jones Industrial Average (INDU)
In march alone, the INDU is up 324 points. The monthly chart of the Dow Jones Industrial Average (INDU) shows that it is in a sideways consolidation pattern/slim jim whilst forming an ascending triangle. The INDU has held its moving averages and is consistently moving upwards. Short to medium term price target remains $11350. If we take out $11350, we will likely be at new all time highs this year. Resistance is at $11750.20. On the monthly you can see that both the PPO and Williams % are both turning up. Volume is also expanding and the RSI is not even overbought. In addition short interest is at all time highs so that should also propel this index higher. We are climbing the wall of worry that is for sure.

The Bank Index - Philadelphia (BKX)
The monthly BKX chart shows that it is in an ascending triangle pattern, whilst also breaking out of a slim jim. This month the BKX is up 2.01% at $108.43 which is an all time high.

The Dow Jones Transportation Average (TRAN)
The monthly chart of the TRAN shows that it is breaking out of an ascending triangle. The TRAN is up 4.02% this month. Today it made new 52 week highs @ $4614.94. The transportation sector is a direct reflection of what a lot of sectors and monthly charts will looks like this year and into next should the DOW or S&P500 take out key prices.

The S&P 600 Small Cap Index (SML)
The monthly chart of SML still remains bullish even though it is overbought. Some of the best gains come when a sector or stock is overbought. As I have said before higher prices are bullish. The SML is up 2.59% this month and is making new 52 week highs @$386.53

Bottom line this market is rising on a wall of worry and high short interest which is bullish!