What Now?

So where do we go from here? If two choppy days are all the bears can muster ,then I guess we go higher or maybe just consolidate for a while under the all powerful 1000 mark on the S&P.

This rally started at the 200 day moving average and kicked off with a couple of 10:1 volume days which is always a bullish sign.

Specifically, from the July trough to Monday’s close:

— The Dow industrials have spiked 1,021 points, or 12.6%.

— The Nasdaq has rallied 240 points, or 13.9%.

— The S&P 500 has climbed 113 points, or 13%.

Last week the benchmarks made higher highs on decent volume and although we are overbought things can stay that way. The 1007 mark on the S&P puts us at about a 38% retracement off the lows.

Earnings continue to pour in, here is few notable names AFTER the close today:

AEA, AKAM, GERN, LNC, SQNM, TSO, HIG, V, SYMC, GNK

The calendar is interesting today as we have oil inventories at 10:30, Treasury 5 year auction at 1pm, the Beige Book at 2PM and Bernanke does a town hall meeting at 6pm .

Good luck today.

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