One of the "bullish" technical patterns that traders are eyeing is the gap fill in the DIA (Dow 30). Right now the DIA is holding the 200 day well, so there is strong support there and it looks like we will fill the gap to the January top. Whether we break it or not is another story but the charts rarely lie and it's showing another 2.5% on the DOW.
We do have some serious things that can hamper this rally this week - the treasury auctions. The yields on treasuries are creeping up which may hurt the rally. The reason of this is that many investors will look at a 10-yr treasury that yields 3.9% (that is risk-free) and move money out of the stock market and into the bond. It will be interesting to see how the auctions come about but these auctions need to be on the radar.
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