Positive data from the ADP Employment report and ISM Non-Manufacturing index couldn’t help the markets from selling off from the market open. Sellers were in complete control, but it wouldn’t be long before the NASDAQ would find support. A concern of ours would be to see back-to-back days of distribution. Essentially, we did not want to see another day of selling with big volume on the NASDAQ. We were able to avoid this, but the S&P 500 was not. Overall the market is in solid position to resume its march towards new highs from here. We know the S&P 500 has 4 days of distribution. However, the bullishness coming out of the NASDAQ is clear there is still some juice left in the tank.
Aside from economic data the Federal Reserve’s beige book was released today. Only crude oil seemed to care about the report as it jumped on the release. Markets really didn’t have much of a reaction to the release of the report. There were no indications within the Beige Book the Federal Reserve was about to alter its forward guidance. We can now thank Janet Yellen for telegraphing the Federal Reserve’s rate hike with changes made to the Bank’s forward guidance. At this point, when they raise rates how will it impact the US Treasury? Very negatively! The question really has become will they ever raise rates again?
Our chat room had some nice winners intraday yesterday. And our two new longs worked right away: FLXN QRVO. Very nice to see. To take advantage of our process go here.
Low interest rate environments have been linked to positive equity markets. We do know since March 2009 we have had one heck of a move up. Will it continue is another question we do not need an answer to, seriously. Following the trend does not require one to know where the market will be tomorrow, but where it has been. Until the identified trend changes within your parameters you don’t act. Right now, this market is in an uptrend with plenty of stocks hitting new highs. This is a very bullish signal. It is nothing more or less. Keep it simple.
This market remains in a bullish position. Today’s support in the NASDAQ shows this market is in position to make a run back at NASDAQ 5000 and beyond.
