Today was probably more of a rally due to the general markets being oversold, than it was about the markets having a sudden change of heart in regards to the conditions affecting our economy and stock market. However, I wouldn’t be surprised to see some a few more days of advancement in the general markets at this point. We had a strong rally off of the bottom with a surge in volume – always a nice recipe for further follow through in the coming days when you have strong volume to match an aggressive price move like we saw today.
However, be weary of where the 50-day moving average is, because that also represents where the previous trendline is, and where the indices are likely to run into some overhead resistance.
Here’s the Nasdaq and S&P charts…
