***** TA Update (intra-day) *****
The markets have traded sharply higher in the first two hours, and on heavy volume.
The Nasdaq a/d is 20/9, up/down volume 6/1, on over 770 M shaers, which projects to around 2.0-2.1B shares but it depends on whether the institutions continue to accumulate stock in large block trades later today and in the important last hour.
The NYSE a/d is 24/7,u/d vol 8/1, on 713M shares, which is also heavy.
This rise today is a bona fide one and odds favor a firm close, as the market internals are strong. The risk is that there will be some profit-taking late in the session ahead of the weekend.
The Nasdaq now has a gap below at 1166, and it will take a herculean effort by the index for it not to fill in the next few days or 1-2 weeks as the gap up does not come from a capitulation.
This rally can move the Nasdaq up to the next resistance level near 1270 early next week if we get a strong close and the Dow has it at 8000, where it has failed a couple of times to break.
If the bottom has been made and we are going to get a 2-4 month rally, there is plenty of time to get long, but I remain skeptical of that despite the oversold and extreme readings on some of the indicators on Tuesday and Wednesday. |
