Yesterdays Action was Impressive

The power of the market that allowed it to launch itself out of the hole was impressive yesterday and gives us the idea that this summer rally could go past 1320 maybe even to 1360.  One must keep in mind that government bailouts are becoming a big factor in stringing out this market decline and makes it even more probable that the real capitulation low is three to four years away. Relative economic problems in other countries and declining gold prices should sustain dollar strength out of the recent bottom.

For the moment the market is probably in a stairstep phase, S&P range for the next few days of 1248 to 1278 with a 1263 short-term swing point.  Employment report should keep pressure on rallys.  We will be out for a couple of days and will not be posting unless something earth shaking occurs.

7:12 AM CDT