Stock Market Commentary: Further Gains on Light Volume

Bulls caught last Friday's shorts out, forcing them to cover their positions. The buying/covering occurred right into the close. Volume was tepid, although greater than yesterday's for the S&P.

The buying didn't escape either Tech

Or Small Caps (although technicals haven't recovered enough to suggest this is not part of a topping process)

The real winner was the semiconductor index. It managed to close at a new high for 2010 - following the lead of the Nasdaq and Nasdaq 100.

If tomorrow gaps higher watch the first hour of trading for a gap close; an early sell off which closes the gap and pushes lower is likely to spend the rest of the day in selloff mode. This market is toppy but it would be a brave short to jump in front of the train.  

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