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:
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.
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