While the market closed off its day highs and volume was light due to the Holiday weekend, the action was generally positive. After a couple mild positive days it is amazing how quickly the earlier weeks damage is repaired and fades into a distant memory. Gold came back to lead on the day with networkers, biotech and the semis all finishing well. Breadth was negative on the NYSE but positive on the NASDAQ, also something we like to see.

The S&P 500 reclaimed the 50 day moving average while the Semiconductor Holders (SMH) reclaimed the 200 day. The NASDAQ looks to be using critical support of 2300 as a spring board and, while may need to take a slight breather, looks to be setting up to challenge highs.

Next week the earnings start to come in hot and heavy, which should make for some exciting action. Should we see some decent reports and guidance, the market is poised for a rip. We much prefer going into earnings season after a brief shake up, rather than going in at highs. We feel that expectations are not overly optimistic and that bodes well.

Enjoy the day off tomorrow as well as the Holiday weekend. Rest up and well see you back here Monday.

RevShark