The current rally in the SP500 index will be intact if these corroborating market timing signals hold into today’s close:

• The banking index (BKX) can close at a new recent high above 54.87
• The small and midcaps can also close at new highs today. That means the Russell 2000 closing over 807.89 and the S&P Midcap 400 index closing over 939.56.

At the moment, the BKX is a bit close to the breakout point, but the other two indices are well above the cited numbers. Tech has already broken out (NASDAQ and NDX) as has the SP500 index itself.

Please see yesterday’s issue of the SP500Tracker™ Newsletter to see exactly where we are:

Click Here to Subscribe to my FREE SP500Tracker™ Market Timing Newsletter and free “Tips”

What to do?

The fact that the indices have broken out yet again in the face of very high sentiment readings simply tells you that we are entering the bubble phase of the market. As I’ve commented recently, you have the option of lightening up a bit as we move up or simply using a trailing stop and selling when the market pulls back and closes a certain percent below the high that was achieved. That is the definition of a trailing stop loss and is a great way to always be sure to preserve profits on profitable investments and trades. You can read more on the website about stop losses on the buying checklist page here:

Buying and Selling Checklist

Standard Disclaimer: Remember, it’s your money and your decision as to how to invest it.

Copyright © 2011 by Wall Street Sun and Storm Report, LLC All rights reserved.