9:00am (EST)

We mentioned yesterday the bulls looked as though they were going to go for broke.

The market was at critical levels to start the week and Monday it appeared it was the bears, not the bulls that had the upper hand and the momentum.  Heck, the bears even had the majority of the talking heads, the analysts on Wall Street and 75% of the public calling for a pullback and a “test” to new lows.

Well, that is why we have a stock market, folks.

The bulls have been riding a wave of good 2Q earnings and a possible resolution to the U.S. debt crisis as the two main catalysts to push the market within spitting distance of kissing new highs. 

We knew coming into the week the market was on shaky ground but with two weeks left in July, we knew some good news had to come out of Washington, right?  The Democrats and Republicans wouldn’t wait until the last possible minute to get something done would they?

With the pressure cooker hotter than a Maryland crab pot, both parties KNEW this week there had to be some progress and so did we which is why we have been telling our subscribers the market would test it 2011 highs.

We still aren’t there yet, and the bulls still might not have enough to get through resistance, but, they are giving it one heck of a go.

The Dow surged 152 points, or 1.2%, to finish at 12,724 on Thursday.  The index traded to a high of 12,751 and came with 50 points of hitting our 12,800 resistance target.  A break above this level could get the blue-chips to 13,000 while the bears will at least try to bring things back below 12,600 today.

The S&P 500 soared 18 points, or 1.4%, to settle at 1,343.  The index reached a high of 1,347 which was 3 points away from our 1,350 target we have outlined all week.  We mentioned once 1,334 was cleared we would be here, quickly, and all that remains between 1,375 and a run to 1,400 is…1,350 and the bears.

The Nasdaq lagged but jumped 20 points, or 0.7%, to end the session at 2,834.  Tech also came within a field goal of hitting 2,850 which will need to be cleared if the bulls want to challenge the 52-week high of 2,887.  The talking heads and pros have been telling you to avoid the Tech sector, and to a degree, they are right.  However, they forgot to tell you to BUY old Tech.

We have been following the move in Cisco Systems (CSCO, $16.35, up $0.63) all week and we have been telling our Weekly Wrap subscribers it appeared as though there was some heavy accumulation going on when shares dipped under $15 to a low 52-week low of $14.78.

Miscrosoft (MSFT, $27.09, up $0.04) reported a super quarter after the close last yesterday evening and beat Wall Street’s estimates by 11 cents.

Let’s see, Apple (AAPL, $387.29, up $0.39) is pushing $400, Intel (INTC, $22.81, down $0.18) spanked analysts estimates and Amazon.com (MZN, $213.21, down $2.34) is pushing all time highs.  

These stocks may not be Wall Street’s “4 Horsemen” but the strength in these names are helping push Tech, or the Nasdaq, towards decade highs.

We also want to be clear that at some point in 2011 the market should trade to fresh highs, but, we don’t have blinders on and we are aware there could be another failed test here at the top which would keep the market in its current trading range. 

To average investors and the talking heads that don’t do homework, they are clueless on charting the market and tend to jump on whatever bandwagon is hot.  This can be quite emotional and confusing if you don’t have a game plan so stay focused and trade what the market is giving you.     

Futures are pointing towards a slow start for today’s session.  Dow futures are down 22 points to 12,668 while the S&P futures are off a point to 1,341.  The Nasdaq futures are lower by 9 points to 2,400.  Subscribers, please check the Members Area for the updates.