More Frustration For The Bears

Another solid day. The market again shook off its midday weakness and rallied into the close. This has to be terribly frustrating for the bears.

Small-caps led the way (+1.3%), followed by mid-caps (+1.2%). Energy stocks got the strongest bounce (+1.9%), along with biotechs (+1.3%), brokers (+0.5%), and industrials (+0.5%).

As for investor sentiment, the ISEE Index opened at 200, a level that we have not seen for this entire rally, but by the end of the day that bullishness had again faded and the index closed at 107.

As long as investors remain skeptical of these rallies, I believe pullbacks will be short-lived. At some point, everyone will move to the bullish camp and it will be time to get more defensive. But that will likely come at higher levels from today.