WEAK VIX + WEAK DOLLAR + LOW VOLUME = RALLY

By TRADER X on February 2nd, 2010 3:43pm Eastern Time The makeup for a two day stock market rally has been seen on all the technicals. Yesterday and today the market has rallied as the Volatility index declined, the U.S. Dollar weakened, and the volume has been very light. This is the perfect recipe for the markets to rally. Everything simply just re-inflates. This is the exact combination that gave the stock market a sharp rally in 2009. Will it last? Can the market inflate itself back to health? We shall see.
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