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Friday, May 28, 2010

Bulls Find Their Footing, For Now

Stocks finally managed to sustain a direction from start to finish on Thursday, staging a huge rally that started with a big gap-up open and kept on going in an exceptionally strong trend day. Volume was uninspiring, but market technicals were excellent, with advancers trouncing decliners and new highs far out-pacing new lows. The buying spree was very broad-based, with chip stocks leading the way higher. A final surge into the close seemed to put an exclamation point on the day's reversal. The Nasdaq indexes reclaimed their 200-day moving averages, while the $SPX and Dow closed right on theirs. Let's take a look at the $SPX and see where we closed out the session and some things to keep an eye on going forward.

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