Strong JBL earnings offset weak earnings from CREE and ADBE to ignite the technology sector. Many of the beaten down momentum names in the fiber and network group bounced today. Despite more bad news, we continued to rally after double bottoming mid-morning and failing to close the up gap from two days ago. The strength was impressive as the bounce took the SPY from S3 to well over R1 on the floor trader’s pivot. On the negative side, we are still below the 50 day moving average on the SPY and the VIX has erased all the recent gains and sits at the 19 level supports for the last month. The VIX looks ripe for a bounce as the market is increasingly overbought. If we can work off the oversold VIX condition, the bulls will have a chance to close above the 50 day moving average into potential quarter end mark up. ***Good reaction to MU and RHT earnings after hour***
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