Intraday rally fails to hold as volume remain below trend
Filed Under Market Commentary |
Stocks opened the day in the green, gapping higher but, volume wasn’t supporting the open. Stocks begin to drift lower shortly after the open. The NASDAQ flirted with its 200dma at its lows of the day. However, the index lead by the NASDAQ100 lifted the NASDAQ to test its 50dma. Meanwhile, the S&P 500 continued its struggle at its 200dma. Stocks just can not muster a clear trend, we continue to see a market that is trendless.
The best way to weather storms like this is to be heavily in cash. There are stocks making some moves but will they follow through with their moves? This type of market environment does not lend a helping hand to stocks breaking out. We are seeing some moves being made only to see them fail. Remove laggards from your portfolio and concentrate on positions that are showing movment to the upside.
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