The GMI is now at 3 and the GMI-R is 6. As I wrote yesterday, it was possible that the major indexes would turn and break through their key moving averages. This happened, and if the QQQQ holds on Wednesday, I will start a new short term up-trend count. I like the QQQQ to stay above its key average for two days before I identify a change in trend. The fact that the Worden T2108 Indicator is recovering, now at 42%, suggests a meaningful swing to the bull side. 94% of the NASDAQ 100 stocks have their MACD above its signal line, a sign of short term strength. Many pundits are talking about the possibility that this rise is just forming the right shoulder of a head and shoulders top. The fact that many predict this top, makes me more skeptical that it is true. So I have closed out my shorts and have taken beginning positions in QLD and a few growth stocks. If this rally continues, I will add to these positions. If the up-trend fails, I will sell out.