What a difference a new year makes! It wasn't long ago that despondency and gloom permeated the junior resource sector. Now, just 7 weeks later there is optimism in the air and the animal spirits are beginning to awaken ever so slowly.

Today the TSX Venture Composite closed above 1000 for the first time since April 2013:

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TSX-V_2.18.2014

The volume during the last 5 trading sessions has been particularly impressive and confirms that this rally is for real. The initial upside target is the open gap from April 2013 at 1022 with minor resistance near 1040-1050 - an eventual move back up to the April 2013 breakdown level near 1100 would signal a major bottom was put in place in 2013. From our estimation the cyclical bear market which began in February 2011 and reached its destructive crescendo in June 2013 has given way to a fresh cyclical bull which is now in its infancy.