Dear Subscribers:

The market continues to rally from the lows with a buy the dip mentality that we started to observe since the end of last week.

The advance has been concentrated this week in technolgy stocks while other indexes have lagged. 

The strong hands have not been strong buyers, but the market monitor remains in a general uptrend. 

Yesterday we also got an accumulation day in the NASDAQ 100 which is a positive.

I would like to see a broader advance in which the Russell 2000 or NYSE lead the charge. It is concerning that up thrust breadth is narrowing.

Macro data has been in general dissapointing and confirming the slowdown/recession in the US economy.

Today the Philly FED Manufactoring Index was once again in negative territory for a second consecutive month.

Despite the bad macro, the market is rallying with the bad news. Something similar to what happened during last June or September/October 2010. 

It seems that the market is taking the bad news as an excuse for more QE.

Best regards,

                       Victor Riesco