Both Pullback Buyers and Breakout Traders Being Rewarded

All it took was a very brief pause in the buying to set off yesterday’s fireworks. The last few minutes wasn’t as pretty but the market heads into the last two days before the 4th with a nice head start. Today the market is moderately overbought and volume will likely to dry up here as we head towards the holiday weekend.

For point of reference, this market is identical to 2005 and 2006, with both pullback buyers and breakout traders being rewarded. Until the Fed changes policy (as discussed yesterday), and/or volatility rises, the path of least resistance remain higher.

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