When all was said and done stocks ended higher on the day while volume slid off heading into the close. The NYSE had to deal with a computer glitch that was not properly handling trades causing volume to be “off” giving an inaccurate picture of how active the exchange was. Whether or not this affected the NASDAQ will never be known, but NASDAQ volume slide lower at the end of the day. Price action was certainly positive but there were quite the swings intraday as there was a quiet battle between bulls and bears. Leaders were pretty much untouched and acted just fine as a lot of leaders are forming 3 week tight formations. Overall, the market had a ho-hum day that was more positive than negative.
During periods of consolidation you often get days where the market seems QUITE BORING. This boring action is quite constructive as it often leads to tighter formations. As I mentioned in the above paragraph there are quite a few names forming tight chart patterns. Very tight closes are very bullish signals and are signals for higher prices. Coincidentally, the NASDAQ is about to form a loose 3 week tight pattern. More importantly, we have very nice tight action going on and could prove to be very profitable in the days ahead.
The overall sentiment remains very bearish, it appears most contributors at Real Money are believing we are headed back to the March lows. We haven’t even seen a Major Distribution day nor have we’ve seen 6 distribution days on any index. Leaders are acting quite nicely, yet we continue to see those who are throwing up the wall of worry for this market to climb. I could really care less whether or not they think we are going to take out the March lows or move into new high ground, but it is quite interesting to me they can make these “calls.” The market could care less whether I or any other market participant has an opinion, it will continued to march to its own beat disregarding all opinions.
Remember, keep those losses short.
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