The spate of weak economic data appears to have shortened the market's pullback as the major averages, including the beaten down financial stocks posted strong gains last Thursday. It looks like some of the hedge funds were scrambling to covered their short positions. The higher weekly close provides additional evidence that the October 2nd low did mark a market bottom that could last until the end of the year.
The NYSE Composite has next resistance at 10,589 which corresponds to the 61.8% Fibonacci retracement resistance and the weekly downtrend, line a. There is initial support now at 10,350 with the rising 20 day EMA at 10,175.
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