U.S. Stocks are up a solid 1.5% across the board at the mid point of trading on Tuesday. Stocks are up in spite of a downgrade for Portugal, which was shrugged off by European traders. Stocks are posting strong gains in spite of Apple shares getting pummelled today due to Consumer Reports indicating it could not recommend the new I Phone 4.
I mentioned last week that if we saw a follow through day in the market averages this week that it was likely a sign that an intermediate term rally is under way. If the market can close at its current levels of the session on volume above yesterday's volume, that would be a confirming signal. Big rallies do not start without such a signal from the market after a sizable up day such as we had last week. If a confirmation day comes within 4 to 7 trading days of the first big up day, then the green light is on.
Scott Cole
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