Thank You, Sir. May I Have Another?

That was a glorious rally. I hear people saying that it was too much, too fast. And that it will not hold. I think it was just due to the fact that there was no one left to sell. Everyone who wanted to sell likely did so by now.

The SPX is currently up 2.25%, while the RUT (small-caps) is +3.7%. And the brokers are up nearly 6% on the day. That's a lot of strength. More than 90% of the volume today was on the upside.

And despite the fact that the volatility indexes got crushed, the put/call ratio and ISE were fairly high today. Go figure.

I like the action, and like to volume. Now, unlike the previous rally attempts, we need to get some follow-thru on this one. So we need to be on the lookout for another strong rally next week that is accompanied by high volume. I think we'll get it.

If you have been adding into weakness, and being patient with the bottoming process, today sure does feel good.
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