Last week’s early dip to a new low set up a minor reversal day on Tuesday. The subsequent follow-through action and a solid Friday close made it a minor reversal week to the upside. The recent rally still has near-term resistance to overcome, as the Dow, S & P, and NASDAQ have yet to top the rally high from two weeks ago and face a couple moving averages. The Dow’s recent intraday high was 10,315 and its 200-day moving average is at 10,313. The S & P’s recent high of 1106 nearly matches its 200-day MA at 1107. The NASDAQ closed right in between its 200-day MA at 2239 and its 21-day at 2252. The previous rally high is at 2307, so there are obstacles to making a sequentially higher high coming out of this downtrend. We’re not out of the woods yet, but I think we made the critical turn off of support, setting us up for the summer rally. Now, all we need is the catalyst, which will be earnings. In the meantime, volume has dried up to summertime levels. Don’t become overly focused that every decline and rally is on too light of volume. We’ve entered a new dimension. The economic data are giving us mixed signals. There will be a negative impact from the oil spill on several industries. Those with exposure to exports will also see added risk to the quarterly earnings. However, most companies derive their earnings domestically, and that will bode well for solid profits. The “summer rally” tends to be the smallest of the seasonal rallies, but we’re targeting S & P 1150 by the end of July.