In my weekend analysis, I talked about the possibility of a bullish reverse head-and-shoulders formation for the stock market. And after allowing for a brief panic on Monday, the market has been quite strong this week and appears to be confirming the bullish pattern.

Today marks the two-year anniversary of the V-bottom that launched an impressive bull market. Since then, the SPY large cap is up about 95%, while MDY mid cap and IWM small cap are up about 135%. Leading sectors include Basic Materials, Industrials, and Financials, which are each up at least 150%. Pretty impressive.

Editor's note: Publication of What the Market Wants was delayed until today because of some ambiguous results from our sector stats.  David Brown explains this in the sidebar at the end of the newsletter.

Doom & Gloom . . . or a QE2 Boom?