We’re not really seeing anything that tells us this recent rally from lows is in trouble.
Though we’ve seen some modest distribution, it’s yet to push our bias to negative.
But playing off the lows of the market can be tricky. The S&P 500 is just finding resistance at its 50-day moving average.
Re-tests of lows also remain looming possibilities.
Best thing to do is sit tight and wait for the market to give us more clues…
We’re looking good as the broader market holds up after posting a Follow Through Day last week.
For those unfamiliar with what this means, it’s a high-volume move of more than 1.7% on a major index that let’s us know institutions are stepping up to the plate to support the market.
Never mind what the headlines about the economy say. The market always seems to do what people least suspect it will.
And we’re also watching our recent Growth Stock breakout in Stanley Inc. (SXE). So far, it’s high volume breakout is picture perfect.
Subscribers are privy to other setups.