The stock market did consolidate over the last three days but internal momentum remained strong as for the whole week advancing stocks topped the 2000 mark on the NYSE. Our ten day oscillator based on the advance/decline has never beeen as overbought as today. This tends to confirm that the recent upmove is more than just a countertrend rally in a bear market and it supports the bull case. The cumulative advance/decline line recovered the level reached in mid-November when prices were trading between 2700-2750 on the S&P 500. This range marks, in our opinion, the fair level of the S&P 500.