Late Rallies

Last two sessions the indexes have been on or near the lows only to have late rallies and end the day in fairly decent shape. Yesterday's late rally began when, CNBC's Charles Gasparino, the Judith Miller of financial television, again addressed the Ambac issue and the apparent resolution reached among the parties. The market has gotten two rallies from no agreement indicating how sensitive traders are to potential bottom action. No one wants to be left behind, just in case the worst is over. The NQ100 tested the lows and with the exception of GOOG acted well enough to avoid a dismal close. It will be the tech stocks that lead any meaningful recovery. Overall, the SP500 and the DJI are still acting as though there is buying interest at these levels, but that will disappear if there is another test of the lows.