Nothing changes investor sentiment like price. U.S. equity markets changed direction on Wednesday September 30th from a market in correction to a confirmed uptrend. The reason for the change in direction is because institutional investors bought stocks with conviction. This buying frenzy shows up in the price and volume action of market averages such as the S&P500, Dow, NASDAQ and Russell 2000. When we receive a positive change in sentiment and institutional investors are acquiring stocks we want to focus on individual companies and market sectors that show the strongest fundamental and technical characteristics. Not all follow through days result in a new market rally. It is important to be aware of changing market conditions and adjust accordingly.