Stocks began yesterday with a decent gain. In fact, the DOW was ahead some 50 points in the first half hour. That rally was expected in light of the magnitude of the late rally Tuesday. In fact, we fully expected the market to remain relatively firm into the testimony of Federal Reserve Chairman Alan Greenspan and Treasury Secretary Robert Rubin. That is exactly what happened. In fact we were very happy to see the markets begin to work lower just after the testimony began. In theory the market was behaving according to plan. Traders had bought the market ahead of the Greenspan and Rubin speeches and they should have sold immediately thereafter. But our forecast fell apart after President Bill Clinton began a press conference. When asked if there was any circumstance under which he would resign Clinton furled his brow then firmly said no. This is just what the market wanted to hear. Yes, we are aware many Republicans are saying the stock market would like for Mr. Clinton to resign. However, the action of the stock market speaks for itself. Every time is appears as though Clinton will survive the market rallies. Why? Like him or not, the Clinton administration has been very good to investors. Most hope this will continue. So what can we expect in the very near term? We think the market is going higher. A rally to DOW 8132 looks like it is in the cards. If we get through that level 8300 will follow quickly.

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