Market Wrap: Nazz Breaks Above 200-day Average

The market powered higher again today, showing both surprising resilience as well as outright strength. Even oil, which reversed lower midday, quickly turned tail and rallied back to even. Nearly every sector saw gains today.

What the charts above have in common is that all 3 of these major indexes have now broken above their 200-day moving averages. It may take some time, but once the 50-day averages can get back above the 200-day lines, it will confirm the bull market is back.

I still did not put any new money to work today, choosing not to chase the strength. Two things that continue to give me pause are the low put/call ratio (0.87) and the plunging volatility index (16.30). These indicate a few too many bulls have entered the picture, and I would prefer to wait for a little shakeout before putting my cash to work.