Window Dressing?

With big gains in both the financials and homebuilders (see XLF & XHB), the market enjoyed another nice day.

In just two days, we've traded from the bottom to the very top of this multi-day trading range leaving the S&P above 1300 going into the final trading day of August. Volume was again very light, but those around decided they want to increase their exposure especially to these two sectors that have been showing leadership since mid July.

Chatter that we're seeing end-of-month portfolio dressing was out there today, but there probably is more to it than that. Namely, it seems some bets probably have going awry especially in the energy space that saw the price of oil give back the bulk of this week's gains amid talk that the IEA would tap strategic stockpiles if needed to keep oil prices down.

Following the last couple of days, I can't wait to see what happens tomorrow. Do the bulls have the muscle to press on ahead of the long holiday weekend? I have my doubts, but we'll see what the tape looks like in the morning. Have a great evening!