Markets Rally on Columbus Day

12:25 ET...DJIA +553 +6.54%...SPX +60, +6.74%...Nasdaq +118.79, +7.24%...RUT +31, +5.97%, Oil 80.68, +2.98 Following the support bounce that began on Friday, the DJIA, SPX, Nasdaq and RUT are all up at as of mid-day on Monday. Key areas to watch are the R1, R2 and R3 resistance areas of Thursday's large black candles. These are the near term resistance level that price must break through in order to go higher. Remember, when resistance is broken price is likely to rise to the next resistance level and will continue to do so until sellers are stronger than buyers at some resistance level. So far on Monday buyers are taking the markets higher. All nine sectors are moving higher with gains from 2% to 9% on the day. XLV +9%, XLI +8% and XLU +8% are the strongest sectors as of mid-day. The DJIA has risen to Thursday's R1 area and is still below R2 and R3. The SPX has also risen to Thursday's R1 and is below its R2 and R3. As of mid-day the SPX is forming a morning star candle pattern. The Nasdaq gapped through Thursday's R1 and has risen to R2 and is nearing R3. Also forming a morning star like candle pattern. The RUT rose to Thursday's R1 on a strong rise on Friday is at its R2 and nearing its R3. As of this time today's candle is confirming Friday's piercing line pattern. Monday's Early Action Moving Up: BIDU, FSLR, GS, MA, MON, POT, AAPL, ANR, MS, CNX, MOS, ESRX, STRA, PNRA, NDAQ, KRE, HANS, UAUA, LCC, PCLN, MEE, AGU, FWLT, NUE, SCHN, X, SINA, IPI, GRMN, SOHU, CF, CLF, BUCY, INFY, DRYS, V, NIHD, FMCN, AMZN, KMT, COH, LDK, MER, ONXX, JASO, DECK, LAMR Moving Down: ZION