I'm actually pretty surprised by the strength the market is showing today.  After a horrible week last week, the only number to come out today was the ISM Service number.  And it came in weaker than expected.  I figured this would move the market considerably more than than the ISM Manufacturing number which came out late last week, with a surprise to the upside.

One of the arguments the Bulls have been using is that since the economy is more service oriented, a slow down in manufacturing would not be as significant as it has been in the past.  But at the same time, that would make this unforeseen weaker service sector worth more.  Yet the market didn't react to this.  The gap down was more to the decline in the Asian markets overnight.

The three major indices seem to be headed towards their 200 day moving averages, with the Nasdaq 100 breaking through it briefly this morning.  AMD stating Q1 earnings would not meet Wall Street expectations could in fact be a warning that the economy will be slowing down quicked than the expected 2nd half of this year.

The Vix is still at 18, which suggests there is much more volatility in the market today than there was 2 weeks ago.  I still think the market has some ways to go.  I've noticed that many traders are in fact sitting the sidelines after buying back in late last week and getting stopped out.