Well, today saw all of the elements come together to form the basis for a rally.

1. We made a higher-low, higher-high pattern on virtually all of the major indices.

2. Key resistance levels that had been significant broken support have been re-breached to the upside including the all important SP500 back above 1492 (closed above 1507)

3. Within the last 3 days ALL of the major indices crossed above their 20 AND 50 day moving average lines. Psychologically as well as technically important (technically only because so many traders and fund managers computers are set to trigger buy signals once we have a close above those averages...self-fulfilling prophecy).

Markets were ready for good news and in addition to an announced program to save mortgagees from themselves by freezing balloon rates for 5 years, we saw the US Dollar rise ABOVE its 20 period moving average for the first time in 4 months...again a psychological benchmark rather than anything statistically signficant.

All in all, the stage is set. Now we watch the players re-arrange the chairs for the next leg up.