The market was firing on all cylinders yesterday. It’s been a while since we’ve had good news, and investors were hungry for anything positive. Import prices, while off 0.6%, were better than expected. Take out fuel and import prices were up 0.5%, showing demand and some pricing power. The NY Fed Index was a little light, but up from the prior month. Production was up. New Orders were up. Inventories were down. That means companies are still struggling to meet demand. It’s a small survey, but was good news. Housing is a highlight this week, but expectations are that the news won’t be good, so we’re braced for negative numbers. The Euro had a nice follow-through day above the 1.2222 level, confirming its breakout from the sharp downtrend. FedEx is expected to release strong numbers today, being used as a proxy for how imports are doing, as well as the overall economic activity. Technically, last Tuesday was the minor reversal day to the upside. That was followed by a solid 250 point up day, but the rally failed at key resistance. Yesterday broke above that resistance, which we see as further confirmation that the summer rally has begun. The S & P, Dow, and NASDAQ broke definitively above their 200-day moving averages. As investors shift their focus to domestic economic growth and earnings potential, the bulls gained the upper hand. That’s not to say that concerns over Europe have abated, but investors are absorbing bad news more readily and are buying into weakness.