The overall market looks to be firming here. Over the past few months a lot of macro level news has hit the wires which on face value looked bleak, yet has thus far only dented the indexes approximately 10%. The current catalyst for stocks is earnings season which commenced this week and over the next couple some big names with the ability to move indexes will be releasing, so while less than stellar results will clip individual names, should the general market shrug this off that would be very constructive.
Looking at the NASDAQ, there have been a string of key pivot lows. The longer each holds the more positive this is for the bullish argument. The current volume pattern is less than ideal however, as the recent down days have come on heavier volume and yesterday's 1.48% move was anemic.
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| $COMP 07/13/12 |
Widening the time frame, the past three years have shown consistent range bound Summer action which didn't resolve until the Autumn. If this continues, it may be another month or two until a consistent up trend is established rather than a week or two of potential.
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| $COMP Weekly |
One last positive sign I saw today is that the Russell has begun to outperform the NASDAQ. The under performance has been evident since February and didn't begin to turn around until April. Since the end of June there's been a persistent uptrend.
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| $RUT:$COMP |
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