Tuesday, March 06, 2007

Better Late Than Never

So my inclination this morning was a good one-- to let the market rally and watch to see if it built on its early gains and closed strong. This is a change in character from the last week of selling.

Small-caps led the way (+2.5%), followed by the COMP (+1.9%). Among the sub-sectors, brokers bounced back in a big way (+2.6%), followed by banks (+1.9%) and energy (+1.9%). All major indexes and ETFs were higher. The international ETFs also bounced sharply.

Volume ran a little below yesterdays levels. But breadth was solid, and the Hi/Lo index on the NYSE moved back into positive territory.

Oil closed around $60.60, and the 10-year was steady at 4.52%.

I think this bounce could last a little while longer, and then I would look for some sort of retest of the lows. It doesn't have to be a lower low, but we won't know that until we see it.


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