Another bullish intraday reversal in the market shows buyers are still willing to support the market. Disappointing ISM Manufacturing reading did usher in heavy selling as volume jumped. However, once again by eleven o’clock buyers began their operations and supported this market. Leading stocks showed strength as many added to their gains a strong signal this market wants to push higher. There are plenty of headlines left this week ending with the jobs report Friday. Regardless of your opinion the market appears want to push higher and our uptrend continues.
Volume has been a hot topic amongst the trading community. There has been a lack of volume and there are plenty of reasons for it. Volume is not absent from some individual names, but overall the market volume has been very light. If this summer has taught anyone anything is that price rules all and do not argue with it.
The next few weeks will be filled with whether or not the ECB will buy more bonds and/or the Federal Reserve will print more money. This week we have the ECB meeting and we’ll find out if Draghi has anything up his sleeve to help “save” the EURO. Piling debt on top of debt won’t work, but it appears this is all the ECB knows. Europeans need to come to realization they cannot continue to spend the money the way they do. Estonia and Iceland have shown the way to prosperity and unfortunately for the EU they have yet to see the light. Let’s not forget the US hasn’t learned either. Price matters and we’ll act accordingly as price unfolds.
We continue to see quite the bullish intraday action at every dip. The past two weeks we have seen the market consolidate its move higher, but it is about time this market pushes higher. Individual stocks are moving higher, but this market hasn’t moved. Perhaps we see the market push higher into new high territory soon, but it is something to keep an eye on.
An okay way to start the week after a bad start to the day and now we’ll need to see this market push higher. Have a great week.
