Markets rebounded Wednesday retaking the intraday highs set at the strong early morning peaks on Tuesday. Volume was quiet, not what you want to see on a snap back as traders return from the Labor Day shortened week. Not surprisingly the Nasdaq led the way gaining 1%. With today’s move the Nasdaq now lies less than 1.5% from recent highs. Its 50 day SMA has proven tough to crack. The S&P 500 is readying itself for a 50 day SMA test to the upside. Yesterday the banks rose nicely with the XLF up .8%, and it outdid that move today rising .9%. Today the semiconductor group lent its hand in the bullish case, with the SMH recapturing its 50 day SMA. Some in the group behaving excellent today included KLAC up 5.5% reclaiming its 50 day, and XLNX up almost 3%. The semis have been lagging as a whole, but riding the tech rotation wave, look for names in the software and internet sectors which remain among the creme of the crop. Leaders in the internet space which curiously did not participate in today’s tech rally were LNKD BLOX. Recent software winners include SPLK CRM. Perhaps the market is interpreting good news as good news now. It has not been that way as of late. Its still a bit to early to tell but maybe all the September skeptics, will have to wait until next year for the notoriously soft month to behave as it should.

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