Over the last couple days, I discussed the overbought condition the broader averages have been in.  Well, today's action was a positive sign that the market may be done with its rest and wants to probe the upside. I'm not willing to jump in, but I did like the action Wednesday afternoon. Let's see the action Thursday for verification if the rally is ready to resume.

One of the best performing industries during the last month has been the resorts/casinos. The volume on the up days has been strong compared to the down days.  This is verification that the buyers are still in control.

Resorts and Casinos

As I take a closer look at the companies within the resort/casino industry, Wynn Resorts Ltd. (WYNN) seemed to be performing extremely well and volume is verifying demand. Also note that it has pulled back the last couple days on less than average volume. If Thursday's highs are taken out, the next leg up should be started.

Wynn Resorts

Once again be cautious of the market volatility in choppy markets.  Make sure stops are in place.

P.S. The Wynn Las Vegas is an absolutely gorgeous casino and I recommend paying a visit.