The market had a nice price move upwards yesterday but the volume was still on the light side. The S&P 600 made a new all-time closing high, while the S&P 500 and Dow are very close to making new 52-week highs. The NASDAQ has actually poked its head back above its 50-day moving average by a few points, but the QQQ closed exactly at its 50 day. I think this juncture is critical for the NASDAQ, it needs to make a high above the mid February high to save it from being locked in a downward sloping trend channel.
We’re back at the point where the Naz starts rallying in earnest. The CMF indicator, has has nicely tracked QQQ turning points the past few months, bottomed last week and has been inching its way upward … meanwhile the Vix remains in a downtrend — it set a new low last week.
It’s been achingly slow going, though. Have to tell you, my personal indicator, which comes from my employer, who is in the business of selling help wanted ads (among other things) reported that want-ad sales have finally stopped falling and there’s hope for an increase – for the first time in three years — in the coming quarter.
Another indicator: One of the empty office buildings nearby now has a couple floors occupied. Also: traffic on the drive in to S.J. is getting worse.
All these point to a genuine turnaround in the Silicon Valley business climate.