Early Gains

Early rally in indexes as part of the follow through from yesterday's reversal of morning losses. Range bound, the bulls keep chipping away to get more footing to attack monthly highs. Some talk about the Fed being unlikely to continue cutting due to escalating inflation problems. If the bulls believe they need the Fed to keep cutting this year then they may find all the bullets have been fired on rate cuts. There is a growing belief the issues regarding bad paper can only be solved over a fairly long period of time which may keep a lid on the upside potential of stocks because of restrictive credit policies ahead.