We, the investing public, are pretty confident about the economy and we wanted to see it in the numbers. It's the 'show me' market and today, some companies showed us.
This will set an overall positive tone for the market in the near-term. Even the fact that they're not warning lower on future quarters is confidence building.
A day like today certainly doesn't derail the change we've seen in the last two weeks. The market was up 16 or 17 percent in a straight shot. It was due for a pullback.
We had the good ISM data and the market reacted very positively. The one missing ingredient was the volume. What we're gonna watch closely in the coming day and weeks is if there is a follow-through on volume. Major institutions drive this market and volume is an indication of that.
The volatility today (Tuesday) was astounding and the moves were very dramatic and quick.
It was a low-volume retreat. It's understandable. There's some profit taking, some lack of news and the ever-present geopolitical insecurity.
