The Closing Look
Stocks rallied nicely on Monday as investors showed up and defended key levels of support (50 DMA line) for the Dow Jones Industrial Average, the S&P 500 and several other important sectors. Overnight, China said industrial production, retail sales and investment data all missed estimates. China also said that measures of money creation and credit growth also came in below estimates. Separately, in his quarterly filings, Warren Buffet said he bought $1 billion of Apple (average price $102) in Q1 2015.
Gary’s Thoughts: Good up day after a bad down day. Seems we are getting a lot of this. But still running in place with a decent amount of areas that had just broken support.
Unless xlf, spy, qqq and iwm break support, or at least some of them break support, what I see is a market holding up fine.
Of my two personal indicators, one must run first, and ahead of the other, to confirm a pull back, and they are not.
Conclusion: The market is ok here. Maybe things will change to mo rr ow, but for today, we are fine.