Timothy J. Truebenbach is the President of True Capital Management and general partner of True Capital Partners LP, a hedge fund. He uses a disciplined model that trades on the intermediate-term time frame. For a free trial to Tim's Nightly Stock Analysis Report click here or call 888-484-8220 ext. 1.

It has been a week since the NASDAQ posted its suspicious follow-through day, 21 days into a new rally attempt and I have to say I’m slightly more bullish now than when it occurred.

The first reason lies in the market itself. We knew that a correction would be coming right after the powerful move we saw from August 14th through August 17th. The big question was whether or not the market would simply roll right over or hold its own. So far, it has held up well in the last few days that it digests those large gains.

Our next piece of bullish information comes from the strong growth stocks that have been setting up and breaking out. We know that market rallies require leadership and as this aspect is improving it means the rally stands a better chance. Newmarket (NEU | news | PowerRating | PR Charts ) broke out on Monday and has thus far held its pivot point of 60.43.



Trimble Navigation (TRMB | news | PowerRating | PR Charts ) is almost an identical chart and has done the same thing through a pivot point of 50.47.



Needless to say, these gains are far from mind boggling and we still need to see a lot more to be true believers in this rally. We will continue to watch and see that the market’s daily price and volume action remains healthy in terms of low-volume declines and higher-volume rallies. If many of the stocks on our watch list start succumbing to selling we will also start to get more bearish, but if new names such as U.S. Global Investors complete new base patterns and successfully break out this market may be just fine.