Yesterday morning it looked the bears would finally have their day as the market looked poised to at least roll over to the point it would fill the gap up from Tuesday. One of the main leadership groups (financials) had staged a major intraday reversal and the 10 day moving average on the S&P 500 was once again broken intraday. It looked like a serious distribution day was piling up. But as has been the case for almost all of 2013 mid day/afternoon buyers stepped in – and in this case almost reversed all the losses. Very resilient action.
There was some interesting drama out of hedge fund manager Einhorn yesterday in the sphere of Apple (AAPL) and using that massive cash hoard. Also LinkedIn (LNKD) posted yet another fine quarter and demonstrated a heck of a moat type of business. Maybe one day it will actually disassociate from trading as a proxy for Facebook (FB).
As for the market still in this same channel, and not even touching the bottom end of it. We are in familiar territory to periods throughout the past few years where there are a lot of negative days actually piling up but within that time frame the market is actually up! (Nasdaq down 6 of 8 sessions but UP over that time frame since the up days are substantial) There are items (divergences) piling up for the bears but the ultimate condition (price) has yet to confirm. It has now been about 2 weeks in this range, and a similar 2 week spell in mid January led to a modest leg up, so we'll see if bulls or bears will be the one to push the index out of this range.
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