Monday’s U-turn rally on the major indexes has the look of potential exhaustion of selling pressure, but not quite the feel.
As the indexes reversed losses to close the day with slight gains it’s likely to have short sellers nervous.
What the Bulls want to see now is dominant buy-volume set in.
Monday’s volume, which was lighter than Friday’s, didn’t quite qualify as Accumulation. The NYSE and AMEX exchanges showed the seller’s were in charge, while the Nasdaq favored buyers.
Rather than look too much into one day’s action we’re going to wait before making any strong analytical judgements.
To the Bull’s cause, recent breakouts from Sara Lee (SLE), Pepsico, (PEP), Altria (MO) and Hasbro (HAS) are holding strong above their 50-day moving averages.
Growth Stock breakouts on Akamai (AKAM), Affymax (AFFY) and Maidenform Brands (MFB) are also sticking. Success here will open path for others.