1. The bullish consolidation formation was confirmed with a breakout above trendline resistance;
2. The 40-day stochastic is rising from right at oversold levels; our proprietary models are based on the stochastic, so it serves a useful purpose here for illustration;
3. All the major moving averages - except the medium-term 75-day moving average - were violated from below; and,
4. Breath has been astoundingly good on this rally. Volume is a bit suspect; but we've found this argument not to hold water in the trading world any longer given the entire March-09 to April-10 rally was on low volume.
Therefore, our upside targets are 1120-to-1160, and we'll expect to see this develop by August-end...which pencil to paper would suggest a rally of another +11% in the space of a month. Now that's a tradable rally.