Yesterday’s massive rally came at the expense of short sellers who overstayed their welcome and the pain for them was broad based as the number of advancing stocks was larger than it has been in well over a year. The question now is “did the market expend all of its upward energy in one day, or will there be follow through?” The S&P 500 closed just below the 200 day MA at 1261 and it will be a psychological victory for the bulls if they can close it above that average for the week. The Nasdaq is in much worse shape, the 200 day MA on the Qs is up at 40.56 right now. Both markets are coming to an area of prior support that may act as resistance so I think the likely scenario is for the market to digest the gains for a few days before it can find some intermediate term directional bias. The primary trend does remain lower, but we cannot ignore the power of the move yesterday when considering if the market can sustain a turnaround. I am expecting today to be a slow day and I do not anticipate doing much trading. A few of the stocks I have my eye on are EGOV, EMIS, FRNS, IMCL, SGMO and TVIA. Many of these stocks are smaller ones which are not likely to be affected by options expiration related activity. I plan on resuming another video with stock ideas next week, you can find my after market wrap-up today and the stock video on Sunday afternoon/ evening.