A few key stocks, that I believe are indicative of their sector, highlights the underlining strength of the market.
CAT, ETN, GS and the semi index broke from their negative trends.
From an earnings perspective, as companies begin to report, and if they continue to outperform estimates, earnings for the SP500 should come in around $95-97 eps. This allows the market to trade to a 1300 level.
The above bullishness may facilitate an SP500 push to 1300 into earnings season. I will look to take on SPY protection, as the SP500-Vix overlay indicates me to do so. (I would look to cover those puts near the 14SMA of the SP500.)
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