A big time rally kicked off trading for the month with volume on the exchanges higher across the board. So much for Monday’s weak action as a big time rally was what we saw today. Small cap stocks did lag the broader market, but the 3% move in the NASDAQ 100 speaks volumes. AAPL crossed back above par and above its 50 day moving average. Volume was higher as the technology giant appears to have solid support at 2015 lows. Overall, price action was pretty solid today. Although there remains blemishes we still have a decent uptrend. We will continue to take our signals and manage our risk.
The hiccup today volume within the indexes show volume was actually lower. According to Bloomberg’s volume figures we saw a 10% drop in volume in the S&P 500 and NASDAQ Composite indexes. Exchange volume certainly showed institutions were active today. Perhaps a glitch in this uptrend, but something that caught our attention. We just need to hold today’s low and consolidate gains. These v-shaped moves are prone to failure.
Last week AAII Bulls and Bears were equal at 31%. It will be interesting to see if bulls continue to grow as this market continues to push higher. Keep an eye on sentiment.
We desperately need new leadership to emerge. Biotech had a nice rebound today, but biotech was leadership last year. Sure, they could turn around and push higher. However, we do not see too many biotech stocks setting up in bases. We do see right side of bases showing up, but they need more time. We need to see more handles.
Today was a solid day. It would be nice if this market doesn’t repeat the same thing we saw in January. March is a favorable month for stocks and so far it looks like it wants to continue higher.
