Improving, but Still Precarious

Indices and many stocks are at resistance, volume was low today and all things being equal the market should sell off from here. That said, the dip buyers have been quietly scooping up shares each time the market pulls back and the market closed strong. It may be a day or two before we know if this is a significant development or just another doomed breakout attempt. Nevertheless, this is how the market climbs a wall of worry so stay tuned and stay alert. Somewhat significant was the relative strength in technology, which is finally showing some leadership, and in particular, the dogs of the market, telecom. Lucent and Nortel, for instance, made strong volume moves.