Yesterday's action created a B7 market buy signal (Accumulation Day). We sit at a maximum of +7 exposure count (for power trend conditions).

Billy mentioned that the enviornment has been ideal for CANSLIM investors. I agree and it has been this way since January. KORS might be setting up as a hight tight flag (HTF). This is the most powerful of all patterns. A HTF is a pattern where the stock doubles in 4-8 weeks (the flag pole) establishes a 3-5 week tight sideways action (the flag) and then breaks above the pattern. These breakouts can result in another price doubling.

The market internals were also strong yesterday when looking at NYSE advance/decline and advancing volume/declining volume. Some know what a Eureka is (described by Ian Woodward). The NYSE internal ratios were large enough for a Eureka condition (very strong market internals). Eureka's early in a market advance are good things. Eurekas late in a market advance can be associated with a blow off top such as we had in October/November 2007. Only time will tell what is going on now.