Strange days continue in this market... yesterday was a great example. Futures flat - and then an explosion of buying on no news within the first hour of the market being open. Why? Great question. You don't usually see the market move like that in advance of a Fed meeting. There was no news... but just a rally out of the blue. We are working on day 23 of 24 without a pullback of greater than 0.5% in the S&P 500... the rally itself here is not remarkable in of itself but the nature of it - without any serious pullback for even a session is.

I am looking at a lot of individual charts and continue to be stared back with stocks on parabolic runs or stocks slowly breaking down, breaking support. But the general market is holding up - my watch list is not full of the type of merchandise that has been in favor the past two weeks so that could explain the divergence in what I am seeing versus the market doing fine. I am actually working hard to find new long positions since (a) we expunged quite a few completely from the portfolio lately and (b) many stocks sitting at the bottom of our portfolio at 0.1% type of stakes have poor charts. Because they are weak, they are staying as tiny holding positions until they fall much further or jump back over key resistance areas. On the flip side, almost everything I like is running on a 45 degree angle.... hard to chase into those.

Thus far on the S&P 500 Fibonnaci has held his ground - he rejected the bulls (Jul 7, 2009: Fibonnaci's Last Stand) on their first thrust forward (no real surprise there) With yesterday's morning jump out of the blue, we are making a second advance to the upper 1010s. So either we are about to hit a double top, or about to make a new leg up. Action in the next few days should give us a resolution to that riddle. I will keep leaning on the technicals here - because so many computer triggers are now set to them. If we break north of the high of last Friday, I expect computers to rush in yet again. This pattern continues - a technical level is breached, computers rush in. Rinse. Wash.