It was another good session that saw an early rally attempt fizzle, but then buyers showed up and rallied the market into the close yesterday. They are buying the dip and looking for fresh names across the board, including Real Estate (XLRE).

There were still Technology (XLK) names in the mix – in fact, Advanced Micro Devices (AMD) can’t stop going higher.

Assessment

The resolution of the market is notable, but the assessment is to take out last Thursday’s high and make last Friday a memory, serving as another speed bump. That would be the next significant “buy signal.”

Market breadth was encouraging as well, with some red, but most extended factors edged higher.

Assignment

Another test for the market is getting Transportation (TRAN) stocks into gear. All the old-school market folks know what I’m talking about – Transportation needs to be in the mix, with all the other market niches, hitting new highs each session.

Good news on the Empire Fed Manufacturing report, which rebounded strongly, but the real eye-catcher was the forward-looking indicators.

This is what we want to see with all the dire economic predictions.

Today’s Session

The market remains to the upside this morning as most earnings reports are coming in better than expected.

Salesforce.com (CRM) led the way last night, even though the report wasn’t that great. The guidance is based more on optimistic assumptions than on contracts.

Bank earnings continue to beat.

Philly Fed came in below consensus, but just like the Empire Fed report, expectations made a significant move higher.

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