Someone's got the shorts figured as weak-handed. These last two days the push higher out of the blue toward the close was something to behold. I wonder who has this kind of ammo?
The advance/decline data was better, but mostly confined to big caps again. Why? Because it's the easiest index to manipulate.
Let's glance at the problem sectors which are all in financials and real estate. They're seeing some buying with conditions oversold.
Friday employment data is released. Perhaps some of the heavy thumbed traders know a good number is in the works for them. No doubt it will move markets one way or another.
The important thing is that over the past two days someone sensed the market as being oversold and ripe for a well-timed short squeeze. Our hats are off to them.
But just a glance at the McClellan Oscillator shows that the severe oversold conditions present on Monday have been much relieved.
I have to pinch myself to remember its August and markets are supposed to be tranquil. But an examination of recent years reveals a more positive month than most would expect.
Have a pleasant weekend.
Disclosure: Among other issues the ETF Digest maintains long or short positions in: iShares Goldman Sachs Technology Index Fund (IGM), Financial Select Sector SPDR ETF (XLF), streetTRACKS KBW Bank (KBE), iShares Dow Jones US Real Estate ETF (IYR), PowerShares DB US Dollar Index Bearish (UDN), United States Oil Fund ETF (USO), PowerShares DB Energy Fund (DBE), iPath MSCI India ETN (INP), iShares Trust FTSE-Xinhua China 25 Index Fund (FXI), iShares MSCI South Korea Index Fund ETF (EWY), iShares MSCI Hong Kong (EWH) and Turkish Investment Fund Inc. (TKF).