While futures were pushing for a higher open sellers were quick to the punch. For a moment it appeared as if the morning gains were going to be squandered. Buyers were eager enough to step in and support the market. The buying was steady throughout the rest of the day. Volume on the NASDAQ was higher with volume on the NYSE ending the session lower. The big question will be whether or not this market will be able to follow-through on today’s gains. We have yet to see any follow-through in any direction. Time will tell. Let’s see if buyers are willing to step up and get long over the weekend.
Well, IBD’s move to push its market outlook to correction mode has served once again. We now see IBD moved its outlook back into confirmed uptrend. Volume was not overwhelming, but it was enough to tip the scales for IBD. Let’s be clear we are not dogging IBD for its market model as it will never miss an uptrend. However, the ZIRP and QE world has changed the environment where old signals are not as reliable. Adapt or die. As long as the Federal Reserve keeps the illusion alive stocks have very little headwinds.
The solid price gains today are a great sign for this market to continue to march higher. Sentiment sure is on the side of higher prices. AAII Bulls and Bears came in the week at 26%. II Bulls even dropped below 50% on the week. NAAIM exposure index did fall to 60% long exposure the lowest level since March 11th. While this does not guarantee a push to higher prices, but we are in a sweet spot where many are skeptical of this market. A positive development for those who are bullish on this market.
A follow-through to the upside here would be a good thing for this market. Despite the mantra of “Sell in May and go Away” this market may just shrug off the norm. Go out and have a great weekend.
