Three white soldiers fighting higher

Last night I wrote that we had a good shot at going higher today, even after two days of impressive gains, and that's just what happened today. Take a look at this daily Dow chart. The interesting thing here is that we have now formed a "three white soldiers" candlestick pattern (OK, they're green, but you get the idea). You don't see this happen very often and it is generally quite bullish. We note also that tomorrow is a Friday and also the end of the month, and that is also bullish historically.

Then we have the futures, which are just turning positive at this hour (1:30 AM EDT) after meandering about earlier in the evening. Meanwhile the VIX closed near the bottom end of its new 14-16 range at 14.62. While this would suggest that the VIX has more room to rise than to fall from here, there is still just enough wiggle room left for the VIX to go a bit lower tomorrow before reversing, thus fueling higher stock prices.

And with the Dow now at 12,763, we still have over 200 points to go before hitting the next resistance mark at 13,000. I don't think we'll be up that much tomorrow, but I do think we'll close the day and the week at least somewhat higher than today.