The market rallied hard into the close today, closing at its highs. Volume also rose on the day, a welcome sign, as this makes for the 2nd accumulation day this week.
Volatility fell again today, with the VIX declining -5%, and getting closer to breaking below that 20 level that often coincides with an uptrending market.
The put/call ratio was high all day, above 1.0, signaling that investors remain skeptical of this rally attempt. The AAII bull/bear survey showed 36% bulls, but 47% bears, supporting my thesis that sentiment remains tepid at best.
All of the above should support the notion of a Santa Claus rally. I think much of the year-end selling has been accomplished, and that investors will look to put money to work into year-end, possibly in anticipation of a nice January bounce.
After hours, Research In Motion (RIMM) reported solid earnings, and the stock is jumping. This should help boost the Nazz in early trading tomorrow.
Have a good night.