today calmed the fears that I had expressed yesterday. Going into a weekend with the numbers we had yesterday would have probably created a lot of concern on the face of investors, but with a strong close today we have removed that fear factor.
Are we out of the woods yet … nope … just back in the trading range that we have spoke about for weeks. Today though we sit boldly in the middle to upper range for the Nasdaq and Russell whereas two days ago we were very near the very bottom hanging on the precipice.
The SPY is fairing better and actually broke out of the trading range today and closed above it, but it is getting very close to the 200 day moving average above, which as we have mentioned before could provide resistance. We have tested (broke through and then fell back below) this 200 day MA twice in the past month and look to be doing this again in the coming week. Although we will probably fail a few more times, the more any resistance (or support for that matter) gets tested … the more likely it will break. If you think about it, if the moving average above keeps getting breached, this means that buyers are not giving up and shows strength.
have a great weekend!!