Drew Arnold's  Instablog

As we expected yesterday, the market caught a little bounce off of the trendline to continue the rally.  Yesterday's close and today's open offered investors a nice dip to buy in order to participate in the rally.  We rallied at the close today, so we might see that strength continue through tomorrow's open.  The next stop for the S&P seems to be 875!

The VIX saw a very significant drop today a continued the bullish move that its been making over the past several days.  As we've written about a lot recently, investors are becoming increasingly more comfortable with the market and less concerned that the market will fall out from under them.   What this means is that even if we see a pullback (maybe off of the 875 level?), we won't see the level of panic selling that we've typically seen over the past several months.  Investors are more willing to hang on to their positions and less likely to sell.

Charts courtesy of StockCharts.com

Disclosure: No position