Monday, October 24, 2005

Glorious Day

Didn't that feel good. I was worried about the strong open, thinking that it would fade again, but the market built on its early strength and rallied from wire to wire. I can't remember the last time that happened.

Volume was nothing to write home about, but the price action was fantastic. The SPX closed above last Wednesday's highs, and the QQQs broke above their 50-day moving average. Bullish action.

The sentiment figures from this weekend showed more record bearishness. I have repeatedly highlighted these indicators, so I'm sure you know them all by now. But now we have a market that looks like it's ready to rally. If all of these bearish sentiment bets begin to get unwound, that will only add fuel to the fire.


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