Looks like my read on all the key clues from Tuesday was right. Not only did the bounce materialize, it materialized in spades. The market's major indices were up well over 1% today, wiping away a pretty big chunk of the losses taken over the past week and a half. On the other hand, have you ever heard the phrase "too much of a good thing is still too much?" I fear that may apply to our present situation. Had the market's rally paced itself a little better the indices might have been allowed to quietly slip back above some key resistance levels and move on to new highs. With the would-be profit-takers' eyes widened after today's big jump though, I can't help but wonder if the bullish tank is already empty again, with all that gas being burned up today. And then there's that surprising lack of volume behind today's gain. It was average volume, but one would expect well above average participation considering the 1.2% rally. This implies today wasn't so much an overwhelmingly bullish session, but rather a day there was just no bearish resistance to speak of. That resistance is still very much out there though, waiting in the wings. It'll be easier to show you what I'm talking about below when we get a chance to look at today's updated charts. But first, we've got a couple of other items to cross off our checklist. From the Site It's been a few days since we've featured a handful of the website's top commentaries. Although time and room are both pretty tight here in today's newsletter too, we just can't not let you know about a few of the really great posts submitted at the site on Wednesday. In no certain order... To say the 3D-printing industry has been run through the wringer in recent months would be an understatement. Is there any chance the worst of the rout could be over? Maybe. An upcoming earnings report from ExOne (XONE) could help answer the question. Peter Graham has a preview of what to expect on Thursday, and how ExOne stacks up against other names in the business. If you're looking for a bank stock but have just had it with the choppy results from the so-called "Big Four", why not think small? Small banks, that is. Bryan Murphy took a detailed look at a small cap bank stock worth considering today. Last but not least, though it's pretty far toward the speculative end of risk-reward spectrum, James Brumley found a good reason to at least add Opexa Therapeutics (OPXA) to your watchlist today. It's just got one more big hurdle to clear. As always, if you've got something to say about the market, a sector, or a stock, feel free to post your well-presented opinion at the website. If it's valuable enough for all of our readers, you may well see it featured here in the newsletter. Bonds Leave No Doubt Not that we had any real doubts ourselves, but if there were any lingering thoughts about the bond market snapping back and circumventing the meltdown that's been brewing up since April, those hopes were shattered this week. Today's action may have been the proverbial nail in the coffin. The chart(s) tell the tale. Yields on 30-year Treasuries now stand at 3.21%, moving well above the ceiling around 3.1% we saw trying to take shape a month ago. Conversely, the floor at $68.70 that tried to form for the SPDR Long-Term Treasury Fund (TLO) has been good and broken over the past week or so. Take a look. Here's the weekly version of the same chart, which I think will give you a little more perspective on just how painful this bond implosion has been. While I can see a brief reprieve from this trend popping up every now and then, I've got a feeling now that the ball is rolling it's going to remain rolling for a while. And speaking of balls that are rolling.... The U.S. dollar is back in a downtrend. Or, maybe it never snapped out of the bigger-picture downtrend that first took shape back in March. Whatever the case, we just logged another lower high, and the bears seem pretty intent on leading the U.S. Dollar Index to another lower low. It's just that a nagging floor around 94.4 and another less-nagging floor at 93.8 are apt to prove tough to break. If they do break though, I think that will largely confirm the greenback is in a more serious pullback. As a reminder, a falling U.S. dollar is directly good for U.S. stocks. Falling bond prices are indirectly (modestly) good for U.S. stocks. The only impasse with falling bond prices are the rising interest rates associated with a bond meltdown, which can increase borrowing costs for U.S. companies. In the current case though, I see the benefit outweighing the downside. The only problem with the "what's bad for bonds is good for stocks" mentality is, stocks are already at their maximum value based on trailing and projected earnings. We'll flesh that discussion out more in the future. We've got to get on with our look at the market. Wow! Don't quote me on this, but I think the S&P 500's 1.2% surge today was the biggest gain we've seen from the index in several weeks. I believe the May 8th pop was the last time we saw one this big. Of course, you can't mention the May 8th jump without adding how on the next trading day - May 11th - stocks started to pull back and ended up giving back most of that day's gain. It's true that the market ended up moving even higher a few days after that. That was a well-challenged advance from the get-go though, and ended up with the strong selloff we've witnessed over the past three weeks. Take a look. My guess is we pretty much just exhausted all the rally potential we had stored up. From here I've got a sneaking suspicion we're going to start heading lower again. It may not happen immediately. It may take a few days of drifting to start the descent again. But, with the S&P 500's flight stalling right in the middle of a major zone of resistance, the situation is just too risky for the bulls to test. On the flipside - and this is the aspect that just gnaws at me - the NASDAQ appears to have room and reason to keep running higher. After kissing the lower Bollinger band yesterday, the composite fought its way back above its 50-day moving average line today. Yes, the ceiling at 5119 is tantalizingly in sight. Just remember what John Monroe over at the Elite Opportunity recently mentioned about a ceiling that's repeatedly tested. While the conventional interpretation is that repeated testing of resistance chips away at that ceiling, a more realistic point of view says continued failed attempts to clear a hurdle gradually convinces people that it just can't happen... or at least not happen until the market goes through a major reset. Bottom line: We're still in watch-and-wait mode. We're open minded, but it's still way too soon to call this the beginning of a major, prolonged rally.