Today the market started with a nice gap to the upside, followed with claiming higher highs after the first hour of trade, and steadily climbed the rest of the day. Volume was slightly above average but more importantly we are back within striking distance of 52 week highs.
All in all we are witnessing a resilient market. The pullback of the last two weeks has been the most significant since last November. While we are not out of it yet, it looks like bulls are back in control. The key price level to watch now is 2810 on the NASDAQ which could easily be tested tomorrow. With this resistance behind us I will begin to put cash back to work and start moving long.
As far as individual equities to consider, I would start with taking a close look at Coal stocks which had a nice day today. These stocks are moving out of some nice setups: Walter Energy (WLT), Massey (MEE), Arch Coal (ACI), and Peabody Energy (BTU) *featured on StockTradingToGo*.
Stay frosty out there.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | (+) Up | (+) Up | (+) Up |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
