Dow Watch: Too Far, Too Fast?

(At 4:31 p.m. EDT)

The Dow's three-day winning streak this week has been an impressive one, good for a massive gain of 469 points, or 5.7%. The win marks the best three-day performance since April 2, and Wednesday's point gain alone was the fifth biggest in 2009 and the best since March 23.

Of course, such a rally always leads to some worry about where the market will head next, with many firmly expecting some sort of retrenchment. Paul Nolte, director of investments with Hinsdale Associates, called this week a sea change in sentiment, although not a lot has changed from the market's perspective.

"We've gotten a lot of good news, but we're still in a trading range, and the rally hasn't come on tremendous volume," Nolte said. "We're getting rotation in the market, and it's coming pretty quick. But the overall averages haven't gone really far since May. We're still stuck in a trading range. We got a lot of good news, but without the volume behind the rally, it makes it tough to say it's going to last." ...