The ragged summer of 2010 is history, thank you very much, but despite an improved outlook for the economy, September drifted forward on very low trading volume last week, probably due to the holiday-shortened week (Labor Day on Monday and Rosh Hashanah on Thursday and Friday). The few economic reports we saw last week were positive, including slightly improved initial jobless claims, and the outlook improved for European banks.
After last week’s Sector Detector article in which I talked about the “relentlessly strong September” making the market quite overbought from a technical standpoint, it looked like the market was going to waterfall into a healthy correction on Thursday. But alas, the bulls pulled a rabbit out of their hat and closed the week with a flourish.