Short term reference points on the Dow suggest that we may mingle several days at these levels but there is a very high probability that the market may go right through the levels where we are and fly right through the “open air” above 13K.

The high probability comes from rising relative strength (RSI) measure, a very strong (MACD) momentum and a rising 20 DMA.

Today’s nice pop in BAC also suggests that banks may also take part in the rally (more on BAC in March post here) while dividend plays like MO or T look over extended (well above the short term DMA) and may be in a pull back mode suggesting rotation.

As for BAC itself, some technicals suggest that the name may have a nice ride through $11, although there is lots of banking overhand from the EU.