Just another day on Wall Street as stocks again were able to find support.  Volume did increase over yesterday’s holiday supressed levels, but volume was below average.  Early on sellers took ahold of the market sending prices lower on volume.  It appeared as though stocks were going to be sold off on big volume.  However, dip buyers stepped in and were able to lift stocks off their lows and show much needed support.  The S&P 500 and NYSE composite did notch a distribution day (technically speaking), but the overwhelming support suggests insitutions support stocks rather than sell them off.

We certainly need to see the market move higher here on volume or we are going to run the risk of this market reverse and head lower.  Volume is an important key and shows conviction amongst insitutional players they are willing to pay higher prices for stocks.  At the lows today it appeared stocks were about to crater under the selling pressure and price action certainly looked terrible.  However, there is an underlying bid to the market and to see support rush in and have volume rise as support comes in is an important key.  Now, we’ll need the S&P 500 to break above its most recent high of 1080.15 on heavy volume to show we have institutional support.

I suggest re-reading the past few weeks of commentary and go over our key points.  We need volume and we need our quality growth stocks to lead.  In our chat room today a member was referring to the market going to break in one direction or another here soon.  This member is right, we are about to see the market move and move big in one direction.  At the moment, it appears it will move higher.  Remember, have your cut loss strategy in place because if we reverse lower on volume it would be a sign to get out of the way.

Be well!  Remember, take it stock by stock and keep positive.