The stock market surged at the opening, following strong retail sales before trading on a tight range during the rest of the day. Breadth closed on a strong note: 3248 stocks advanced compared to 741 that settled down. Options traders were again eager to buy calls on a large scale and put/call ratios are again pointing out to an excess of optimism from this category of investors. Most systematic models based on prices are negative despite the rebound of the last two days. The Dow Jones Industrial index closed just below its 200 day moving average and its chart shows an island reversal pattern that occured last week and hasn’t been filled yet, this has to be watched closely over the next few days.