The markets rallied on a weak $USD, continued enthusiasm over the prospect of QE2 and strong earnings from CSX which propelled transports higher. Gold was the big winner on the weak dollar. Investors were less thrilled by earnings from JPM and bellwether INTC. In fact, INTC earnings were sold aggressively. Smart money took the gap up as a shorting opp and drove prices lower on a high volume spike as depicted on chart down below.The S&P is testing resistance set by the wide topping range from back in April. Open interest is getting a little too bullish, so expect some consolidation/corrective price action soon. Meanwhile, the Q's penetrated recovery highs, and closed at recovery closing highs ($50.52) set back in April. This is where the rubber meets the road. At these lofty prices, meeting consensus earnings won't be enough to propel prices much higher. We need to see big earnings beats ie. whisper numbers for high flying tech names. As the old saying goes "money talks and bullshit walks".
After hours, APOL earnings and negative outlook crushed the stock and several of its peers COCO, CECO, DV, ESI, ...
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