Markets were quiet the day after the Fed inspired rally and that should be considered a win for the bulls. When a stock or benchmark has a huge up day and stubbornly refuses to give much back that action is considered very benign. There most certainly was some short covering that contributed to Wednesdays stellar advance, how much of course we will never know. But the fact that volume tapered off indicated sellers were in no rush to book gains. The Nasdaq recorded a bullish inside day, a feat probably better than it sounds, given the huge range it traded within Wednesday. It has now had four consecutive weekly CLOSES above the 4000 handle, with 3 of those 4 trading beneath the large round figure intraweek. Going into Friday it is up 1.4% for the week. The S&P 500 perfectly kissed its 50 day SMA and thereafter sprinted like a schoolboy who planted his first ever smooch on his crush. With one session left in the week the S&P 500 is higher by 1.9% and has a good chance of recording a good looking outside week. Banks who will most benefit from continued tapering with better yield curves to be had, and GS in the group took out a bullish inverse head and shoulders pattern (could be looked at as a triple top too) 170 handle on Monday, and the trade was confirmed with powerful volume yesterday. It is now challenging the recent highs of 175.34 made back in January 2011. On its way to the round 200 number it will have to get through the 193.60 highs in October 2009. Even an MET which is inside the XLF looks good. Shaping up with a bullish falling wedge formation. Concerning however is the action in some of the top rated internet names. Former leaders LNKD BLOX TRLA are lower from their recent 52 week highs by 15, 38 and 37%. You have your GOOG PCLN IACI FB’s to balance out the group. But when laggards start to join the fray like an SWI ANGI or even to a lesser extent RAX, it may be time for some rotation and to start shaving some holdings of winners in the sector.

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