Yesterday, was a solid day for the market, the kind of bounce back we’ve seen from time to time, but one that has run out of gas all year long.  The market is locked in a narrow range with rallies fading and freefalls reversing on cue, according to established technical parameters.

The only negative thing with the session; in addition to the sharp pullback into the close, was the volume or lack thereof.  Still, every S&P sector was higher for the session save for utilities. Consumer discretionary names in travel such as Expedia (EXPE), Priceline (PCLN), and Trip Adviser (TRIP) enjoyed great sessions while Harley Davidson (HOG) popped and merger activity in auto parts, pushed Delphi (DLPH) and BorgWarner (BWA).

Last week, I pointed out that small cap names were beginning to make big moves; that trend continues.  The Russell 2000 is the most compelling index.  The small-cap index making a series of new highs and lows, it seems to have a clear path to 1,204.  

The Russell could be poised for a huge move, in part to a short squeeze that isn’t too far from here.  I don’t think any equity index will go too far in front of the pack, but the current action is telling.  The market is looking for the right news to spark a run.

Also, crude oil is looking good again, and the next move through $51 on a closing basis will be huge.  Make sure you have exposure.  I think the best way is a big name that pays a hefty dividend and a higher-risk beaten down name that’s on the mend.

Today, Janet goes to the Hill and she’ll have to ask questions about everything under the sun; she might opine on Fed policy, too.

Today’s Session

Equity futures having given up a big chunk of the gains before the open underscores that same angst that saw the rally cut in half moments before yesterday's close.  Earnings warning from Werner (WERN) is the kind of news that reminds the market of a sloppy recovery still riddled with potholes and frustrations.  Let’s see how things shake out.