Major indexes are seeing some whip-saw at their 50-day moving averages. No surprise here.
Thursday marked the second day of Accumulation this week, suggesting heavy buyers are on the prowl. A better test of volume will come on a down day, where we’ll look to see if sellers have lost their conviction.
The bullish cause is clearly being endorsed with semiconductors (SMH), retail (RTH) and finance (XLF) all above their 50-day moving averages. How long this will remain ultimately means everything for the dominant direction of the market.
We also have a number of quality stocks holding high ground, though nothing truly stellar, but again, it’s summer, a time when sideways price action has been known to set a tone.
More on individual stocks in our report for subscribers.