Nice rally today, just when I thought the underpinnings might give wa,y the bulls grabbed their horns and charged. I twittered about an hour before the rally started that the bulls better take the hill soon or things could get ugly in a hurry. It pulled back on light volume ( all the rallies have been light volume) and turned around quickly.
Advance-declines were 4 to 1 positive on New York and 3 1/2 to 1 positive on Nasdaq. Up/down volume was 10 to 1 positive on New York on total volume of just under 1.5 billion. Nasdaq traded about 2.1 billion and had about a 12 to 1 positive volume ratio. The bulls couldn’t ask for much more, especially the way it closed. We’ll see if there’s a follow-through tomorrow. Levels we’ll be keeping an eye on tomorrow are overheard resistance around 1200 on the NDX. We’re about 8 points from there. The SPX has yet to take out the 778-80 area, closing at 778 today. If that’s taken out the next overhead resistance is around the 800-05 zone on the SPX.
Steel got torched, energy rallied and solar is just a waste of time as a sector. I had a really good day, oddly I was short as usual, I was lucky with some FAZ shorts and caught AXP a couple of times. But, the fun on the short side ended in the late afternoon. Let’s see if the bulls can follow through or acquiesce to the bears. The volume sucks. Traders market still.