NV, since I am the only on still suspicious of this mini rally here, and view it as an extension of a major distribution pattern, I would note that your comment: "The drops in oil/gas stocks (and other defensive areas) also seems to suggest investor appetite for those defensive sectors is giving way for more growth oriented stocks., is actually bearish, not bullish. The nature of the evolution of bear markets is that the stronger segments (and you can add to that the drugs, including MRK, just hitting a new yearly low) die last, furthermore, the last leg in a bear is usually the most merciless. Yes, if we have a close above 2250 on strong volume and excellent breadth, and new highs exceed at least 250, I may wear my horns again. But with less than 30 stocks in the NDX above their 200 days moving average...I would say we have more troubles ahead. I have pointed out to few additional "teltale signs, such as the behavior of MSFT, QLGC and BRCD, and would like only to add, that the SOX is painting a series of lower highs and lower lows quite systematically since May 22nd, and where the SOX goes, the Naz cannot be far behind...
Zev |
