What’s happened with the markets since I decided to take some time off for my first vacation in about five years? The answer is price-wise not much, but price action-wise, quite a bit. The major indices are back to levels where I left them but it has been a volatile ride, with the S&P 500 index and the DJIA first dropping precipitously and taking out their 200 day moving averages, then experiencing a frenetic week of consolidation, only to come roaring back to near or just slightly above their 50 day moving averages. Is this latest move sustainable? It very well could be, as a bullish morningstar reversal pattern formed into the close of last week. This three-day formation is made up of a large dark bearish candle, followed by a narrow opening and closing range “doji” candle, and completed by a large white bullish candle. It represents a transition from bearishness to bullishness, and is usually seen at important lows. Today’s move is confirming action, but of course there could be another period of consolidation before the indices continue to advance, and that would probably be healthier than a “V” shaped bounce. I’ll be monitoring the situation and posting intermittently during this last week of rest and relaxation.