We head into the second half of the session with the Dow Jones Industrial Average (DJIA) up 108 points and sitting near its best levels of the session. The S&P 500 (SPX), Nasdaq Composite (COMP), and Russell 2000 (RUT) are each gaining more than 1%.

Today’s strongest groups are the SPDR Homebuilders (XHB), US Oil Fund (USO), and Natural Gas Index (XNG). The Amex Biotech Index (BTK), Semiconductor HOLDRS (SMH), and iShares Treasury Bond (TLT) are the weakest areas.

I ended yesterday saying that I viewed the flat close as slightly encouraging. The action so far would, obviously, support the idea that buyers are still willing to step in. As they stand now, the Dow and S&P 500 have recouped much of the recent dip and are in a position to potentially challenge their September highs. As usual, I will follow up after the close with the daily charts.

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