The stock market followed through its previous day’s advance with strong breadth: 2708 stocks closed higher on the NYSE compared to 1114 that settled down. Short sellers were certainly caught up by surprise and had to rush to cover their positions, followed by sytematic traders whose models were pointing down. In the option market, we observed heavy buying of calls. These observations corroborate the internal strength of this market we have been pointing out since last October. In summary, we are still of the opinion that a period of consolidation/correction may be the most welcome scenario but the market may continue to surprise everybody on the upside.