Monday Gave Us a Convincing Breakout By Dick Arms About this article: The dramatic reversal on Friday, in which a 250-Dow-point loss was transformed into a similar gain, said a great deal about a change in mood on Wall Street. For the first time in months, bad news was ignored. I see that as a result of the washout the prior Monday in which we saw a rush for the exits, producing the second-highest Arms Index reading in history. After Friday's turn, the strength then carried well into Monday, and it was apparent that volume was higher on the upside than it had been of the prior days when the market went down. The decline yesterday took away the gain of the previous day, but as you will see on the first chart below, the strength on Monday was enough to produce a very important breakout. We now have a series of higher highs and higher lows, which... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200. More Stories From RealMoney Durable Goods Up Move Down the Tech Food Chain Jobless Claims Still High Bulls' Tenacity Is the Big Question Mark Should You Buy It? Pharmaceutical Product Development Bad News Trumps All Support for Banks Holds, For Now Bummer, Yields Are on the Rise Money on the Line Makes a Big Difference Structured Products: Unsafe at Any Price MORE STORIES FROM REALMONEY

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