Wednesday’s wrenching dipsy-doodle left a modest rally target at 2456.00 intact. If the futures had headed lower instead, it would have generated a major sell signal. In the actual event, although the overnight low threatened trouble, bulls seized control around 5 a.m. and ran the futures up to a threshold that left their dominance in little doubt as the weekend approaches. The stock market will be open on Monday, but with Independence Day falling on a Tuesday, we should expect the obligatory holiday slowdown to begin in earnest by mid-day Thursday. Prices presumably will have an upward bias, however, since today’s short squeeze will have left bears with little enthusiasm for intercepting a yet another bullish stampede.
