Chew them up

Strong buying on the heels of a target rate cut bodes well for Bulls.

We have further evidence of accumulation from institutions as heavy sell-volume is clearly absent the last two weeks.

Recent institutional buying is especially attractive given all the negative news out there.

If these headlines aren't inspiring sellers anymore, what will?

But let the market take its course. One thing we can always count on are counter trend rallies that suck in all kinds of money only to chew them up.

The 50-day moving average for the major indexes is the critical line to watch now.