Just when you think this market can’t muster any strength we get a day like today. The one knock on the day’s action was volume was mixed. Good news is the NASDAQ saw volume increase day over day. It is clear behind AAPL’s move the NASDAQ is the index of strength. At least this market got interesting as of late given how tight the market traded in August. Solid session and certainly removes some doubt regarding the direction of this market.
There is always a chance we could completely reverse today’s gains. I am sure there are a few bears who would love to see this happen. 36% of AAII respondents were bearish. There are traders we know who completed go out of the market last Friday. How does one make a call after one day? We sure don’t. NAAIM exposure index sunk into the 60s after being in the 90s a week ago. Active managers did some trimming, but remained long this market. While the trend was on shaky ground today it firmed up.
Heading into the weekend we should see today’s gains hold up. If we retrace more than half of today’s gains it would certainly be a big negative for this market. We want to hold these gains at the very least. Sure, it would be nice to add onto the gains today. However, a small pullback wouldn’t be that bad.
We hope you all have a great weekend. Lots of great football to be played this weekend. Less than a week until fall officially begins. We will see you back here next week.
