We inched higher again today on the Nasdaq and SP-500 with the Dow lower on the session. Volume sunk more than 7% across the board mostly due to the drop in volume from AAPL. At some point we will see a pullback, but for now we are continuing to push higher. All we can do for now is continue to manage our signals and control our risk.
Sentiment continues to favor those who are neutral. AAII bulls dropped on the week to 31% while bears pushed up to 26%. II Bears hit a 5-year high post Brexit. NAAIM exposure index hit a high not seen since January. The retail side of this market continues to wait while the professional side has been all in. It will be interesting to see if the retail side will jump in this market. It makes no difference to us whether or not the retail crowd jumps in or not. All we need are proper signals. As long as we have trending stocks, we will succeed. We have a lot of them, right now.
AMZN and GOOGL moved higher after reporting their most recent quarterly earnings. These stocks will probably help nudge the NASDAQ higher in the morning. Earnings season has been somewhat good for the market. We are well off the Brexit lows with the majority of stocks pushing higher after earnings. Not the complete blood bath many were expecting. So much for market pundits.
Have a great weekend!
