Weekly commentary

Last week we had a complete reversal: the market broke out of its tight trading range to the UPSIDE. We had three signals that told us we, as traders, should take off the bear mask and put on the bull. The first bullish signal was the surprising strength the market showed us on July 5th; The second one was Thursday's bullish reversal in the face of the bombings in London. And the third was the Nasdaq closed above 2100 for the first time since January. This is a clear breakout, though the volume was not very much impressive. But I would not try to "pick bones in an egg" here. In conclusion, these three signals during the week changed me from a bear to a bull.