On Day 4 of the most recent attempt at a rally the NASDAQ confirms a new uptrend. Solid news for the market as the NASDAQ Composite gains 1.66% during Friday’s session. Volume just barely increased on the NASDAQ, but the combination of price and volume gave the day a follow-through session. Now, we need to avoid distribution and work our process. NYSE had a lack of volume to confirm the rally. Not to mention small cap stocks lagged significantly. Not the type of action you would expect on a powerful follow-through. Regardless, we have a new uptrend at hand and will react accordingly. So many are quick to bail only to see the market snap back.
One thing we must avoid over the next two to three sessions happens to be a distribution day. If we happen to see a distribution today it all but guarantees this rally will fail. Even in day two odds the rally doesn’t last are over 70%. As long as we avoid distribution and stocks act right there is no reason we won’t see this market continue to push higher!
Would love to write more, but this laptop acting up this morning. Time to take care of the machine and make sure all the necessary maintenance is taken care of prior to the market open.
We hope you have a great week of trading!
