The stock market followed through yesterday’s advance, it reached 2737 before ceding to some profit taking, the advance of the last two days has been fueled by short covering and the hectic opening confirmed that view. Although prices advanced nicely, breadth was unconvincing: 2200 stocks advanced compared to 1452 that closed down. This confirms our view that the market has entered a countertrend move that may drive the S&P 500 up to the 2750 2800 area. Hedging activity is still running at a high level pointing out to some cautiousnees from options traders, a positive sign whereas the weekly sentiment survey among private investors puts into evidence too much bullishness at this stage of the cycle.