More than 3 % up across the board...so..what's next ?

After today's advances the major market indices have gained between 26 % (S&P) and 33 % (Small Cap Russel Index).

To put it in perspective...advances of this magnitude are almost once in a lifetime events. One has to go back 50 years or so to find a 30 % advance in the stock market withing 15 trading days. (which is what happened after today).

I talked about 8000 in the Dow yesterday and we broke through that number today. A positive (or perceived positively) unemployment report tomorrow might very well fuel another advance towards the 8250 area. If we make it to that level I believe there is a good chance that this might be it on the upside for a while.

The market will need to undergo some consolidation pretty soon...otherwise we might get into a situation that the pace of the current advance will invite a rather drastic sell off. The market is alos sending some warning sign that the current advance is running out of steam. Financial stocks were the ones which lead us up on the way up...however...today financials weakened by quite a bit later in the day.

In summary...I would expect another leg up early tomorrow but would not be surprised at all if we see some substantial weakness developing later in the day or early next week.

Of course, there is a chance that the unemployment report will come in much weaker than expected which might then lead to a full blown sell off. No likely...but one never knows.