Friday’s rally moved the Dow above its support at 12,200. The million dollar question is, does it hold and can it build from here?

We are BIG on confirmations at The Correct Call. While the Dow temporarily broke support at 12,000, the NASDAQ, NYSE & S&P 500 all held firm and failed to cross-under their major support levels.

We are keeping a very close eye on all the index charts as all of them are within inches of possible buy/sell signals; a decent move in either direction could create a nice trading opportunity.

During the next few weeks, we believe the market will be subject to fickle swings as traders and investors interpret economic news as better as or worse than expected. From day-to-day we can have bi-polar reactions, up big and then down big, but essentially going nowhere.

The next big catalyst for stocks will be the start of the 2nd quarter earnings season in early July. Then we will get thousands of individual report cards on the real health of the economy.