Against all reasoning the market has broken out of its range and appears headed higher. We have already commented that portfolios should be hedged with well chosen longs. We are liquidating our personal S&P shorts. But we are not buying the indices yet. We are presently evaluating the implications of changes in the composition of the Industrials. The technical case for an upthrust here are that it would be nice to see prices reach the neckline. Irregardless of the economic realities, which are in direct contradiction to market behavior, Friday’s strange up surge — we’ll post a chart soon– and today’s action leave no doubt that the buying is on. No need to stand in its way. If the bear comes back we can always get short again.