The markets headed higher yesterday accelerating right out of the starting blocks without hesitation.
The 1,100 level on the S&P; 500 proved to be overhead resistance again, and we sold off that number in the afternoon as the rally faded on low volume, but it kept the major indexes on the plus side by over 1%.
While this rebound, after five days of losses, pushed the S&P; 500 back above its 50-day moving average by a slight margin, much more upward momentum is needed to restore faith in that this rally is nothing but another head fake.
Supporting the upside move were decent earnings news by Wal-Mart and Home Depot along with strength in manufacturing and less worry about Europe as Ireland was able to sell some $2 billion in bonds without any problems.
I would not read too much into any market moves until after Labor Day, since many Wall Street players are on vacation, which lowers the volume and exaggerates day to day activity. I expect this range trading to continue.