Market Wrap: Growth Stocks Finally Rally
The market consolidated its last 3 days of gains nicely today. The SPX closed only slightly down, while the Nasdaq rose on the day.
A look at the chart above shows that the S&P 500 rallied right into resistance at its overhead (and downsloping) 50-day average. That is a natural area of resistance, and it is normal to see the index rally halted at these levels.
The scenario the bulls are hoping for would be for the market to kind of mull around in this area, just chop around for awhile in low volume, quiet trading. Then after a few days or so, make a spirited rally right up and through this resistance on a increase in volume.
Given how high the put/call ratios have been running, and how the market has reacted positively even in the face of negative headlines, I think this scenario can come to frution. It might not be picture perfect like I describe, but I think the market can continue to move higher into quarter-end.
Tech stocks finally rallied today, with the semis leading the way today, +1.21%. This is a welcome change, as lately all we've seen is energy and commodity stocks rallying.
I am still worried about the dollar weakness, but not so much that I won't look to add to my positions on a pullback.
Have a good night--