Stocks continue to move higher
Filed Under Market Commentary |
Out of the last 8 sessions, the S&P 500 has closed near its high of the day 5 times and closed higher 6 times. This certainly is a sign of strength. There remains some weakness when we take a look at the new lows continuing to outpace new highs. However, we shouldn’t be risking losing gains because our opinion says this rally is weak. There are gains to be had, albeit small, but we still can grab gains from this market.
AAII study found that bulls took the lead ending this past week at 40.65 while the bears fell to 39.84. This does not come as a big surprised as we followed through and confirmed the most recent rally last week. Remember, it was the IBD 100, IBD 85-85, and IBD New America confirming the new rally.
Today’s market seems to be in hold mode for now. The Nasdaq is leading the pack to the lower side while the Dow and S&P 500 flirt with the unchanged area. Volume continues to be slightly higher than yesterday but overall its not telling us much. Next Week’s FOMC meeting will certainly give traders food for thought heading into the final weeks of this year. We can only guess at what will happen, right now stocks are telling us to position ourselves on the long side. So we’ll go with that, no sense in trying to outsmart the market. In the end, the market always wins.
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