Negativity Withers as Bulls Rally

The ability of the market to shrug off last week’s events and push higher yesterday seems to reveal an underlying resilience that was unexpected by many including us. The potential end to rate hikes may be the catalyst sending prices higher here. The QQQQ and SPY rallied on strong volume. From here it looks like at the very least recent market highs will be retested. It’s nice to put a dreary August in our rear view mirror and see some volatility return. It is hard to say how much gas this rally has behind it, but that is a question for another time. Right now we need to get in while the getting is good. Breadth was strong yesterday and scans revealed a strong number of new 52-week highs and stocks testing breakout levels and/or breaking out. Volume was strong across the board. This is not a market that is playing defense.