Biting My Toungue

I know you don't want to hear me say it was another solid rally. All I can say is that even I was surprised. I had to leave the office for the last 2 hours of the trading session, and when I got back, I couldn't believe how much we rallied.

The small- and mid-caps really led the way, with the RUT +2.1%. Nice. And nearly every sector was higher today, save for the utilities.

Breadth was very strong today, with the Hi/Lo index on the NYSE hitting +276. That is the most net new highs the market has seen since May 5th. It is a sign that leadership is broadening, which is bullish.

The investor sentiment surveys that came out today showed small increases in investor optimism, but nothing meaningful. I still think most investors are watching this rally, but they either don't believe it will last or simply just don't trust it.

As a result, there is still likely ample fire power on the sidelines, which will likely slowly find its way into the market as the indexes stair-step higher.

The only knock on today's rally would be volume. By my count, volume came in slightly below yesterday's levels. This is okay, but I don't want to see a pickup in distribution days.