The morning gap lower open was quickly met by buyers as stocks were lifted off of their lows. Volume throughout the morning was running higher than Tuesday, more noticeably on the NASDAQ than NYSE. However, the buy action slowed as volume tapered off on both exchanges, but it was the NYSE that slipped below Tuesday’s pace. The S&P 500 and NASDAQ were able to close near their highs on the day with the NASDAQ chalking up a day of accumulation where the S&P 500 could not match it. Overall, the day wasn’t all that bad, but it was leaving so many wanting more.
What did so many wanted from today’s market? Leadership from a few leading indicies were certainly lacking, but an index I created using proprietary filter criteria was higher on the day by .7% and on volume. This index does not replace a more popular index out there, but it does show there were glimpses of hope out in the market today. We have yet to see clear leadership whereby leading stocks setup in nicely shaped bases. So far, we have seen bases that are not as sound as they could be and therefore continue to leave us wanting for more. Ideally, in an uptrend we see stocks breakout of bases and run higher. Lately, it appears after the run they quickly return to their pivot. Not an entirely BAD thing, but one that can hurt the psyche of any trader.
Taking a look at the S&P 500 and you can all but wonder if the Financials have any strength whatsoever to lift the index any further. Since the financials were the worse hit group from the great bear of 2008, it shouldn’t have come to a great surprise the group would lead us out (in terms of price gains). However, it appears the S&P is having a difficult time gathering any sort of buying interest. While on the NASDAQ today’s market clearly showed the index had buying support at the day’s lows, not too mention the composite index lifted in higher trade. It may be time for the financials to take a back seat and make room for the leading stocks!
One bit of economic news that may impact the market on Thursday and that is the Philadelphia Fed Index set to be released at 10amEDT. The street is expecting this manufacturing index to fall greater than 2 points. Rewinding back to Monday we saw the Empire Manufacturing Index soar well above expectations flashing a reading of 12.08 where the street wasn’t even close. A positive change coming from the manufacturing sector is a step forward in the right direction for this market and country. Manufacturing helps keeps jobs here as well as the American dollar!
No need to be impulsive here as we will continue to be patient. If the market decides to follow-through on its attempted rally then so be it. We simply ask that leading stocks take over and lead us higher! Keep your losses short and head on straight!
Video One is available to GOLD and PLATINUM subscribers in the forums. FREE and SILV will not have a YouTube video available until my video technician returns. I apologize for the inconvenience.
Comments are closed.