PRE MARKET
End of quarter, oversold, massive put buying and important support levels won the day yesterday and continue this morning.
We have been telling you all week that it was end-of-quarter window dressing week. Of course, window dressing is illegal so does not happen. It finally hit yesterday and right where it was needed.
The NASDAQ 100 to the penny…and we mean to the penny…at the 50 day moving average. The NASDAQ right at the 50 day average. The RUSSELL just above. On top of that, there was massive put buying (the wrong way crowd) AFTER the recent drubbing. Digging deeper, many growth names pulled right into the 50 day and bounced. And lastly, the worst of the worst, emerging markets and other countries were due to bounce after mini-meltdowns…thus the bounce.
The DOW will open back at the 200 day with the S&P at the 50 day.
The question is how well and how long the bounce goes. Answer…don’t know. But it enables us to see which names are really the strongest, the strong and the not so strong.
This does not change that more than 50% of the market is in bearish mode of different levels depending on which sector you are looking at. It does not change the overall bearish look on all those other countries.
For now, the end-of-quarter bounce.
Lastly, AMAZON (AMZN) continues to take over the world. Bezos is amazing.