The rally continued today as the Dow gained 575 points on lighter volume. The advance/declines were 6 to 1 positive. The summation index is moving higher with gusto. The NASDAQ continues to lead the way and that's a plus for the bulls. It has been a very good week for stocks. The S&P is climbing back towards the 50 day moving averge but resistance begins at 4200. There's also the next down trend line and the 50 day at 4275. At the rate we're going you'd expect things to just move past these levels next week though I don't think we are simply heading straight up but I could be wrong. Not sure how much of today is short covering ahead of a long holiday weekend as the markets are closed on Monday. The S&P is not yet short term overbought but it's getting there. Thw weekly indicators have turned up for the S&P. Another week like this and the head and shoulders pattern for the S&P will be negated. Gold was up about ten bucks on the futures. The US dollar was lower and interest rates remained steady. Both the XAU and GDX had fractional gains on very light volume. Getting to short term overbought for the gold shares but not there yet. Staying patient with regards to trading the GDX again here for now. Mentally I'm feeling OK. The VIX was lower and closed on its 50 day moving average. This area has proven to be resistance for the VIX to move lower for the past month. I get the feeling that it will break lower this time around with just the way the market has all of a sudden lost its sellers. Still above 20 for the VIX and there's other resistance to be found going forward. But we'll let the market tell the story as I don't want to get caught up in trying to be right about the S&P getting down to 3600. It could be that we've seen to low for this down draft and not close at a bear market level for the S&P 500. A similar thing happened at the end of 2018. We'll see. Plenty to ponder over the long weekend. We'll be checking the charts as usual. Europe and Asia finished the week with gains. It's Friday afternoon and time for a break.