Volatility Returns

Friday’s rally was pretty impressive and overnight the strength has continued.  While I hope I am wrong and the bear market is over, the fact remains that the market has yet to get cheap enough to indicate a long term bottom has been reached.  So we may see the rally on the S&P extend to the 1376 major resistance area but the dollar is near support and all of the action is really just reaction to short term inputs.

Read John Mauldin’s last letter, see links section.