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Market Trend Is Up Thanks To Philly Fed, Oil

The trend is up! Despite initial disappointment withpoor industrial production numbers, things improved when the Philly Fed came in stronger, and got a lot betterwhen oil dropped midday.

Stocks close at the highs for the week, and we had significant breakouts:

--Transports: 10-month highs (near historic highs!)

--S&P 500, NASDAQ, Russell 2000: 4-month high

--S&P Energy and Materials: historic high

--Emerging markets index: high for year

There are problems:

--Low volume

--Complacency

Still, look at the facts: there is a very small group (10-15 percent of traders, by my estimate) who are bullish, and modest gains like this followed by breakouts like those above are just what is needed to get the perhaps 40 percent of traders who are fence-sitters back in the market. The other 50 percent are outright bearish—it will take a lot more to get them back in.


Questions? Comments? tradertalk@cnbc.com

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  • A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

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