Today was not confirmation of the pullback ending. The markets are consolidated, but not oversold, and today’s rise in the Naz and SP500 were modest and hit the high momentum SMAs (which they broke)…
nasdaq:
SP500
IMO, this is not an indication of anything significant. The only chart that caught my eye, that may even hint at this being the true end to the recent pullback was the VIX. The set up appears as if the VIX will break down, which mostlikely would mean the markets rally.
HOWEVER, the Vix is at an interesting support level, with Gasoline prices approaching, imo, unsustainable levels, especially w/unemployment at 9% at the moment.
Don’t get me wrong, I think there are still interesting individual names, like BNI at attactive levels of support (but are still not oversold and potentially go lower) that I would be a buyer of at current levels. This can be said about pretty much all stocks I am looking at, except for the Semis as they are oversold due to their current weak fundamentals.
The current market’s true support is the high momentum SMA via 20 or 14SMA, which were broken. This means the SP500 could see around 830 and the Nasdaq around 1600.
