Markets recorded a strong rally Wednesday as the Nasdaq made it 3 straight advances and is now higher by 3.1% for the week cutting nicely into last weeks 4.3% plunge. Last Friday the tech heavy index filled in the bullish gap from 10/22 which recaptured its 200 day SMA that session. The S&P is up 3.1% this week too thus far and the handles on both aforementioned benchmarks which were getting long in the tooth look constructive again. The market enjoyed a broad rally with all 10 major S&P sectors gaining ground. Oil once again found comfort at the round 40 handle as many profess that it must trade to the 37.75 lows made in late August. Equipment firms rallied hard today and not to long ago we heard the big integrated oil names were going to be cutting cap ex extensively. When stocks rally in the face of bad news it is obviously good news and of course many in the space have been building the right side of their bases even as the underlying commodity lagged. Perhaps going forward we can gain clues in the group from the action of solar names. If they start to pick up it is benign for energy, as a falling crude price makes solar less attractive and competitive. FSLR is a name looking firm here as it recently filled in its 10/29 earnings gap almost to the penny on 11/13. In addition it found support at its upward sloping 200 day SMA. The round numbers came into play here with 40 being strong support the weeks ending 1/9-23, 8/28 and 10/2. The 60 figure was resistance on 11/6-9. An entry here looks prudent.
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