The melt-up resumed today helped along by the huge drop in oil prices. You certainly didn’t want to be short today (or recently). It seems like we’re in a perfect storm of good news of late. The SOX even made it out of bear territory today by closing above its 200-day moving average.
Here are charts of the S&P 500 and the QQQQ. Note how strong the trends are (based on how well-spaced the lines are) in the multiple moving averages — especially in the long-term group of MMAs (orange)
Woohoo! But we’re running out of time. The early month strenth cycle is up friday-monday. At least the msft divided hits tomorrow.
Muckdog, what do you base that on?
The monthly strength period normally begins a day or two prior to the beginning of the month, through the 4th trading day of the month, as new money hits 401(k) plans. $32Billion of MSFT dividend is deposited in folks’ accounts today. We’ll see if that gets reinvested or not…