March 27, 2009 (FinancialWire) (By Frank Kollar) -- The S&P 500 Index (SPX) has now gained a remarkable 23% since March 9. The Nasdaq 100 Index (NDX) has added 22.8% and is now at new 2009 highs. Typically a 20% gain marks the start of a new bull market. If this is a doomed bear market rally, it is certainly a strong one. Something to consider is that the second guessing and pessimism over the potential for this rally are bullish contrarian indicators. Over the past three weeks we have had four trading days of better than 9 to 1, up vs. down volume. These are bullish indicators, especially if there is more than one such day in a short time span. These breadth surges were also unusually strong. 27 to 1 on March 10 and then 19 to 1 on March 12, a 10 to 1 on March 17 and then a powerful 31 to 1 on Tuesday March 24 this week. We have no record of four such trading days in a row. The 1982 bull market started with just two. Then, according to Elliott Wave Theory, we appear to have just completed a Wave 5 on March 9. Wave 5's are usually the bottom of a series of waves to the downside. This forecasts an entirely new sequence of waves to the upside ahead. Sentiment, using the CBOE Volatility Index (VIX), still shows skepticism ending at 40.36 on Thursday, March 26. Levels over 40 used to forecast a bear market low. Of course we have been at high levels since November 2008, but still, holding over 40 on the VIX while the market gains 23% is a healthy sign of disbelief in this rally. Bear market rallies have a way of looking good before the axe falls, but this one is looking extra good.

The Investrend Earnings Calendar features Biofuel Energy (NASDAQ: BIOF), expected at $-0.22; KB Home (NYSE: KBH), expected at $-0.81; MI Developments (NYSE: MIM), expected at $0.89; Xinyuan Real Estate (NYSE: XIN), expected at $0.04.

The Investrend Economics Calendar lists Personal Income & Consumption Spending for February (8:30 a.m.), U. of Michigan Consumer Sentiment Index for March (9:55 a.m.).

The Investrend Events Calendar showcases POM Analyst Meeting.

The Investrend Money Index is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ 50 Most Actives indicate the direction in which the mass of money is flowing. Last session's trading showed 40 advancers versus ten decliners. Advancers were led by Ja Solar Holdings, Co., Ltd. (NASDAQ: JASO) up 41.73%, Micron Technology (NYSE: MU) up 13.75%, Starbucks Corporation (NASDAQ: SBUX) up 11.02%, Seagate Technology (NYSE: STX) up 10.07%, Dryships Inc. (NASDAQ: DRYS) up 7.58%, Hewlett Packard Co (NYSE: HPQ) up 7.06%, Proshares Ultra Qqq (NYSE: QLD) up 6.28%, Nvidia Corporation (NASDAQ: NVDA) up 6.24%, Ford Motor Co (NYSE: F) up 6.14%. Decliners followed Amer Intl Group Inc (NYSE: AIG) down 8.33%.

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Happy Birthday: Michael Bruce, Nathaniel Currier, Sir Henry Royce, Gloria Swanson, Sarah Vaughan, Mstislav Rostropovich, David Janssen, Cale Yarborough, Tony Banks, Quentin Tarantino, Mariah Carey.

Today in History: Robert I of Scotland and Elizabeth de Burgh were crowned king and Queen of the Scots in 1306. The government of the United States established a permanent United States Navy and authorized the building of six frigates in 1794. Antonio Lуpez de Santa Anna ordered the Mexican army to kill about 400 Texans at Goliad, Texas, in 1836. The Lake Ontario Shore Railroad Company was organized in Oswego, New York, in 1868. The Good Friday Earthquake, the most powerful earthquake in U.S. history at a magnitude of 9.2 struck South Central Alaska in 1964, killing 125 people and inflicting massive damage to the city of Anchorage.

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