Bears Blindsided

Rumors of the death of this market have been greatly exaggerated. Yesterday, I heard plenty of bears proclaim that this market was toast, and that the distribution day was just the start of a nasty decline.

But as is often the case, one day does not make a trend. And just as quickly as the market looked like it was breaking down, it reversed higher and put in a huge day.

The Nazz reversed sharply higher today, on even higher volume. The SOX index was up a full +4.3%! That helped the COMP rise not just above yesterday's high, but above Friday's highs as well. It now stands less than 1% from making a new high.

So tech had a big day, financials did well, energy stocks bounced, and healthcare was strong. This leads me to think that even though the number of new highs is lower than the last time the market hit these levels, it is not necessarily indicative of narrowing leadership.

If that were the case, we would be able to point to just one or two industry groups and say that they are the only areas of strength in the market. But I see lots of groups participating, albeit it with healthy sector rotation. Not bad, not bad at all.

Have a great night--