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The S&P 500 gapped open this morning to multi-month highs not seen since last July, as price flirted with the psychologically-signfiicant 1300 level. While it is a bit frustrating to see most of the indices gains in 2012 being captured via opening-week gaps higher, it is tough to ignore how punishing the tape has been to bears. With so many market players and observers watching that 1300 level as a line in the sand, including investors focused on fundamentals, I would be surprised if we just blew through it without a bit of a struggle first.
Despite the broad market gap higher, though, the action underneath the surface is starting off in a relatively sluggish manner, as I am seeing some initial fades. As the session progresses, I am watching to see if the bulls come with a second wave of buying to propel some of these breakout plays higher in a more convincing manner. A few names that I am watching:
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