After a flat start pre-market got a spark from Citigroup's (C) earnings results, the stock market has drifted higher but this is a light session. A lot of traders are out to celebrate Passover, so the market lacks a certain amount of passion. Still, we needed the market to catch a break; now the trick is to maintain that dollop of momentum. There are two ways to look at the market from a technical point of view:

Short Term:  major indices, including the S&P 500, have broken down to points where they continue to look vulnerable. For the index, it would take a close above 1850 (the 50-day moving average) to trigger panic buying so it's vulnerable to 1750 (the 200-day moving average) until then. However, on a longer-term chart the index looks perfect, having made a series of higher lows and highs.

As much as I'd like to take the bait, we got burned a couple times last week and think we need to wait for more earnings and economic data. On that note, I continue to think that the market is oversold.