My, Oh My, What A Difference A Day Makes...

DJIA + 485.21, +4.68% SP500 + 58.32, +5.27% NASDAQ Comp. + 98.60, +4.97% Russell 2000 + 21.86, +3.32% Exchange NYSE NASD Advancing 2,790 1,948 Declining 705 1,025 Oil $100.64 +$4.27 Gold $880.80 -$13.60 $SOX 306.89 +13.58 Strongest Sectors: XLF +7.11%...XLE +6.12%...XLK +4.47% Weakest Sectors: XLV -0.33%...XLI +0.98%...XLU +1.56% Sector Watch Up Trending: Sideways: XLF, XLV, XLP, XLY Down Trending: XLI, XLE, XLU, XLB, XLK The word out Tuesday evening is that the Senate will vote Wednesday evening on an improved financial rescue bill which is expected to pass and that the House will vote again on Thursday and reportedly has the support for the changes in the enhanced version of the rescue plan. Watch for this development and the market response to this pending development on Wednesday and Thursday. The Financial Sector, XLF, which was Monday’s weakest sector was the strongest sector on Tuesday. The Energy Sector, XLE, which was the second weakest sector on Monday, was the second strongest sector on Tuesday. Yes, you guessed it, the Tech Sector, XLK, Monday’s third weakest sector was Tuesday’s third strongest sector. My, oh my, what a difference a day can make. On Monday all nine sectors were down and on Tuesday eight of the nine sectors were up. Only the Health Care Sector, XLV, was down 10 cents or 0.33%. Gold and Oil traded places from Monday to Tuesday. Gold was up on Monday but down more on Tuesday. Oil was down over $10 a barrel on Monday and gained just over $4 on Tuesday. In our Stocks watchlist no stocks were up on Monday and there was only one stock down over 70 cents on Tuesday. HANS again moved above its 30 horizontal breakout level. KRE in a bull flag pattern formed an inside day as it bounced off its 30 DMA on Wednesday. NTRI formed another lower low on Tuesday in its bull flag pattern. Index Commentary The DJIA rose above the R1 of Monday’s large black candle and just barely past the July 15 horizontal low…if this R1 breakout holds action could be moving back into the trading range which began on July 15. The SPX moved above the R1 of Monday’s large black candle and is still below its July 15 horizontal low, now resistance….formed a bullish harami on Tuesday. Look for confirmation on Wednesday…a close above the body of the harami day. The Nasdaq closed above the R1 short-term resistance of Monday’s candle and formed a bullish harami pattern…watch for confirmation on Wednesday of harami…still below the July 15 low which is now resistance. The SOX formed a bullish harami at closed at the R1 resistance of Monday’s candle. The RUT formed a bullish harami that closed above the R1 level of Monday’s candle…is trading above its July 15 low and above the key 650 support area. Tuesday’s Action Moving Up: BIDU, AMZN, MA, FSLR, ANR, CF, GS, ESRX, BUCY, X, SOHU, CLF, DECK, CNX, FWLT, MOS, ZION, BTU, INFY, NIHD, V, MER, FMCN, MEE, NUE, KBE, HANS, EBAY, DRYS, NDAQ, SINA, MS, AGU, MON, PCLN, BRCM, EXPE, COH, LAMR, IPI, RF, SCHN, Moving Down: AEM Intermediate Term Market Trend: Down Short Term Market Trend: Down