"The Warren Buffet related Muni-Bond insurance plan was a positive catalyst," notes options and market timing expert Larry McMillan in The Daily Strategist. Here, he looks at the overall market and some select buy signals in individual stocks.

"The multiple re-tests of the support area around 1310-1320 has inspired confidence as buyers have emerged. And the S&P 500 Index has been able to stage a strong rally above the 1350 level in the interim. This is a first positive step.

"Sector support behind the rally remains primarily in the Energy sector: however, the Financial sector has joined in somewhat. A continuation of these sectors rallying in concert would bode well for a continuation of he current rally.

"Market breadth has improved, though our breadth measures remain on recent Sell signals. The $VIX remains on the cusp of turning bullish, as it is trading just above the 26 level. A close below this level would be bullish, as it would show a break of the more bearish uptrend.

"The CFE Volatility futures curve has shifted lower across all maturities; these spreads are now moving in a more bullish direction. Therefore, on balance, volatility measures do appear to finally be moving in a more bullish direction: though they have not yet conclusively done so.

"Given the fact that $SPX is currently above 1350; a stable base appears to be in place; and volatility trends are moving in a more positive direction, the case for a near-term rally can certainly start to be made.

"Our put-call ratio signals -- which are the signals that the computer can 'see' but the naked eye might not -- include new buy signals in Chevron Texaco (NYSE: CVX), Hewlett-Packard (NYSE: HPQ), and Coca-Cola (NYSE: KO)."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.