Wednesday, May 24, 2006

Nice Reversal Day

After plunging midday, the markets were able to find some footing and rally into the close. The gains were small, but at least we finished in the black.

The SPX gained +0.2%, COMP +0.5%, while the MID returned -0.2% and the RUT (small-caps) was flat.

Biotechs got a much needed bounce, with AMGN having a nice day. Technology stocks fared pretty well also, with MSFT up nicely and bucking the weakness most of the day.

If you go back to Friday, I said that I expected to see a confirmation rally this week. What I did not expect was for the market to undercut Friday's low in the interim. So while I would like to call today the follow-thru day, we technically need to consider it as Day 1 of a new rally attempt. Thus, we need to look for another follow-thru rally early next week for confirmation.

I'll be back with close sentiment figures in a bit.



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