Market began a rally near end of the quarter and month. Unlike other rallies that start with a bang with huge up days on breadth the rally started with just one 365 up day. However there was continuous buying and it lead to a breadth thrust.
That set up the stage for Friday's disappointing action. Market went down but the breadth was positive (barely). On Monday the European worries lead to drop in market. However breadth was again below 300.
This sets the market for earnings season. The earnings will decide the fate of rally. If earnings continue to be good then we will have up move. Earnings disappointment will lead to rally failure. If the earnings are just near expectations then we will have same sideways move.
At this stage it is back to range.
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