Wednesday Morning Update

After reversing yesterday's drop, I halfway expected a big move up today, and that is what we are getting. I see a first resistance level at 1986, and we are almost there now, so how the market behaves there will set the tone for the day. I don't know the reason for the rally (as if the market needs one) but I smell intervention, especially after the big move in the dollar index yesterday. Today's leading sectors are the two that have been weakest of late, XLF and XLE. Trailing is XLU, which has been the strongest, so I suspect we have a lot of short covering going on. The Nasdaq is about even, but the Russell 2000 has a huge lead. Oil is up, gold down, treasury yields up.

I have 15 new highs so far, with breakouts in JAZZ and ORLY. I have no reports in the earnings front.