The S&P 500 and Nasdaq Composite successfully tested their 50-day moving averages intra-day and closed above them. If they don't hold the 50-day moving averages then the gaps down to 1,310 and 2,740 on the S&P 500 and Nasdaq Composite, respectively probably get filled.

“We crawl on our knees for you,
Under a sky no longer blue
We sweat all day long for you,
But we sow the seeds to see us through
‘Cause sometimes dreams just don’t come true,
Look now at what they’ve done to you.”

- Rise Against: Re-Education (Through Labor) -

Warren Buffett’s letter to shareholders gives us a great view of the overall economy from a man who has his finger in every pot and his letter to investors gives us a very good insight as to how things are going in the various sectors his operations cover. Most importantly, what I have learned in my own 40 years or reading Mr.

Since late November 2010, it has been the large major bank stocks that have taken over as the leading sector. Stocks such as J.P. Morgan Chase & Co.(NYSE:JPM), Wells Fargo & Co.(NYSE:WFC), Bank of America Corp.(NYSE:BAC), and Citigroup Inc.(NYSE:C) have soared higher by more than 20 percent in less than three months.