The preponderance of data available to us now suggest that there indeed will be a year end rally. I seriously doubted the ability of those who desired to make it happen, but the charts don't lie and right now they are suggesting this move has further to go. I will only refer to two charts, the NASDAQ which has broken out and the SPX that is threatening to. There are other charts that can be examined like the strength in the BBH, the island reversal on the SOX and so forth. We can also consider that this is all a manufactured rally with poorly positioned players jumping on a move to try and salvage their performance this year. That's all a side show. What we have to focus on is what the market is doing and what it's telling us; and right now that is that it intends to rally into year end.

Here's the NASDAQ which has broken above the intermediate term down trend line. It is signaling a further rally. We are short term overbought but I do not expect that we will come in far before the dip buyers show up.

 On the listed issues side, here's a chart of the SPX which is threatening to break higher itself. I suspect that it is only a matter of time now give the move in the OTC issues.

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Conclusion

Given the current evidence displayed in the charts, you have to continue to position long for a continued rally. Use pullbacks in individual stocks to restock your portfolio and rotate through positions buying dips and distributing some stock you hold into peaks. Expect a good rally through Thanksgiving and then more of an up and back market through end of year. As we get to December, then we will have to take another hard look at whether the so-called January rally has a chance of repeating or whether the pain of last January's trading will come back to haunt this market.