We repeat from Thursday’s action:
Thursday was another classic reversal but not just any reversal. It happened again at the VITAL LONGER TERM SUPPORT AND 200 DAY MOVING AVERAGE. Reversals like that usually lead to upside testing.
We add from Friday’s action:
Quiet morning action led to buyers finally showing up and short sellers covering.
The DOW and S&P both touched the 200 day in the morning before ramping.
The SOX also ramped off this important level. You all know how important the SEMIS are to our work.
FINANCIALS undercut Thursday, reversed and then rallied on Friday. They are still not showing much “ooomph!”
All major indices are back in range but the NASDAQ/NDX most definitely showing best strength, back above the 50 day moving average. Just keep in mind the influence AAPL, AMZN, NFLX, BKNG have on these indices.
This is the 3rd retest of the long term support/lows. It “feels” like a better move could come off the 3rd test especially with the NASDAQ/NDX/GROWTH showing strength…but do not blink. After the wild swings we have been seeing, both daily and intraday, we take nothing off the table.
OILS/ENERGY continue to be the best strength but remain extended. OIL PRICES still going up so expect another 10-20 cents at the pump soon. Sorry!
A bunch of RESTAURANT names have moved out to new highs. SHAK and WING are the latest. CMG is putting in a flag after its strong move.
Keep in mind, loads of resistance on any further attempt to move up but the tone is feeling better even though we are just off the lows.