Mr. Market came to party today and for those of us left on the dance floor it was a rock'in good time. The Nasdaq led today with a very impressive 1.46% move, making up yesterdays draw and adding a few more points to boot. What we find so encouraging about this move is that it came with Google (GOOG : Nasdaq) not showing much life after yesterdays beating. Had a bounce in Google been the catalyst for today's move, we may have been inclined to view the action as dead cat, rather than true accumulation. Volume was not as high as yesterday however above the recent average boding well for potential follow thru.

The story for the day was the semiconductors which rallied off their base by over 4%. We have been writing for some time that we felt this area may be forming a bottom and today's action solidified the rotation we've believed has been taking place. Small caps continued to new highs again today, while select technology large caps, such as Cisco (CSCO : Nasdaq) and Broadcom (BRCM : Nasdaq) also moved out to yearly highs, leading us to believe large institutions are rotating new money into technology.

We came into today heavily long and were rewarded for our recent conviction. We also have a very long shopping list and will be looking for prudent entries for new buys. The bulls won on the day, and tomorrow we'll see what the bears bring to the table. Rest up, tomorrow may be another busy day  

Have a good evening.

RevShark