The NASDAQ Composite gapped open, pulled back slightly during the afternoon, then closed in the upper one third of its daily trading range at 82.34%. The risk trade was definitely on with the small-cap stocks leading the way. The Russell 2000 was up by 2.7% and the S&P small-cap 600 was also up 2.7%.

Internet and semiconductor stocks dominated the action as the Bears were forced to run for cover which only added fuel to the strong gains for the day. The NASDAQ was up 1.7% to close at 4351.97 and the gap from the prior day’s close put immediate pressure on shorts to cover their positions. It is gotten so bad for the Bears that even Tom Sosnoff from TastyTrade and thinkorswim fame is backing away from the short side until this market plays out. Read Full Report