Another good day for buyers as yesterday’s recovery saw some solid follow through, with short covering likely part of the mix. Volume climbed to register an accumulation day as the key 50-day MA was challenged for some indices.
The S&P was one such index to close above its 50-day MA. In doing so it edged above 1,950. Supply is unlikely to be an issue until it gets too 2,000.
The Nasdaq hasn’t yet reached to challenge its 50-day MA, nor has it done enough to register a base breakout, but signs are good that it could do so soon. The Rate-of-Change index ticked down off zero resistance, which is a potential sign for bears to attack resistance, but action in Large Cap indices suggest such an approach may be the wrong side of sentiment.
The Russell 2000 inched higher in a low key day for the index. Rate-of-Change remains well below the mid-line zero switch for bull/bear market, but the ‘bear trap’ is looking like a solid bottom. Relative performance remains good however.
The Dow has also come back to push beyond its 50-day MA and confirm the breakout.
The Nasdaq 100 also pushed above its declining resistance.
Tomorrow will be about consolidating the gains for the last two days. Bulls can be pleased with February’s action as it suggests there is more to come.
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