*** TA Update (intra-day) ***
The markets closed firmly yesterday on moderately light volume, considering holiday volume.
This morning the market averages were down moderately with moderately negative internals but in the last 20 minutes they have turned more positive.
The NYSE and Nas a/d and u/d vol are now positive, with the Nas u/d vol at 3/1 and NYSE u/d vol at 5/4, but volume is light once again, indicating a lack of selling pressure but not very strong buying yet.
Stocks have made a strong rally in the past couple of weeks but selling pressure at this time has not come back strongly into the market despite higher prices.
If the buying the dip mentality can continue for a day or two more, then bona fide buying pressure may start to occur.
The VIX and VXN are still coming down and if that continues, the market pros and hedge funds will see that as a sign that this rally can continue.
The Summation's 10% indexes have turned positive above their zero lines and the Summations themselves continue upwards, with the McClellan Oscillators at very overbought levels, so pullbacks will happen from time to time.
The question is how much longer this rally can last, but for now the path of least resistance for high relative strength sectors, such as ag/ferts and infrastructure, is up, along with selected techs.
Crude oil is flat which is on the heels of a large move up yesterday, and it may also have a little more upside potential mixed in with dips.
drbob |
