Stocks rallied strongly yesterday after reassuring comments from Bernanke in regards to continuing economic growth and subdued inflation. Retailers rallied 2% after a slew of positive earnings reports and the CBOE Retail Index (RLX – 419.80) closed at a new year high. As we are constantly told that the consumer represents 70% of the economy, the strength in retail sales should be seen as a very positive reinforcement of an economy that is gaining momentum. And yet the uneven data continues. This morning new jobless claims were far higher than expected. The sovereign debt rating of Greece is back in the news today as some speculate to a possible downgrade. Durable goods orders ex-transports were disappointing. The futures are down very sharply. The 20 day average on the Nasdaq (2235.90) comes into play at 2189, the 20 day on the S&P 500 is (1105.24) is at 1086. Any closing move below those levels would undoubtedly turn our indicators back into a Down trend position and suggest that we are back into full correction mode. The up sloping 200 day averages are some 9% lower on the Nasdaq and 7% lower on the S&P 500, so there is plenty of potential downside if we rollover again. For now, however, we have to view any near term pullback as an opportunity to add long side exposure as the major indices remain above their 20 day averages, the slopes of which are starting to turn Up. It admittedly is starting to feel like a game of tennis, but we need to put the defensive team back on the field should our above mentioned line in the sand levels be violated. Until then we will keep our bull hats on, and view weakness as opportunities to add long side exposure.