Home on the Range

Although the scenery has remained much the same, from the current perspective things do look much different however. Over the past 9 sessions a very strong thrust has occurred as evident by the SP being up 5.94% over this time with 4 1%+ moves. The NASDAQ during this time has galloped 7.8% with 5 1%+ moves during this period. This brings the indexes within their 52 week highs and in a slightly longer time frame, the top end of the range that began on 02/18. In this context the SP is up .06% and the NASDAQ .91%.

SPX 07/08

It remains to be seen how this will play, but from the vista point I use to look out over the landscape for viable periods of swing trading, things have aligned and the underlying breadth is looking quite strong. This move is being supported by increasing New Highs/New Lows which is a positive.

$USHL5 07/08

Using the Market Monitor, the underlying breadth become clearer when viewed in context of the 03/16 to 05/02 period. Although visually this period shares similarities to the current move, the recent numbers support the view that there is broader participation in this rally; additionally the washout that occurred before this rally was much deeper.

Market Monitor 03/16 to 05/02

Market Monitor 06/09 to 07/08

 The current market is exhibiting signs of strength across numerous gauges of market breadth and general characteristics attributed to strong markets such as the maxim pertaining to weakness on the open and strength at the close, exhibited by the action of Friday 07/08. By the end of next week it will be interesting to view how this plays out and whether or not there will be upper resistance for the time being or will the market power through and establish new highs.