Low volume rally

Today was another low-volume rally. Not surprising since the path of least resistance is up and it was holiday. Look for a positive move on Friday's shortened trading day. But next week, be on the watch for another distribution day. If one occurs next week, then this rally is doomed. Resistance is now just above 1600 on the NDX, with support at 1564. Any breaks of these levels must be respected.

Bonds continue to work higher and are putting the finishing touches on a short-term base which will likely lead to an upside breakout in yields next week. No reason to be long the bonds at this juncture.