Take That Bears
by
, 04-29-2010 at 05:11 PM (2012 Views)
BAM! Take that bears. Today's trading started out fast, with a gap higher followed by high, broad-based volume interest. Today's close leaves the S&P 500 just 1% below its 52-week high.
It's amazing how fast the news shifts, and with it the market's fortunes. After some bad news on Greece, Portugal, and Spain earlier this week, today's' bond action saw their yields contract, which allays concerns about the severity of these county's fiscal health. I may not agree with that assessment, but that's how the market apparently perceived it.
The only two data releases today saw the initial jobless rate come in at 448,000, which was more than forcast, but not by much. Continuing claims came in at 4.65 million, again higher than expected, but not by much.
Today's action was positive for the seven sentinels as they move back to a more bullish stance, but we're not out of the woods just yet. Take a look:
We had enough buying pressure today to flip NAMO and NYMO back to buys.
NAHL and NYHL came very close to flipping, but remain on a sell for the moment.
TRIN remained on a buy, but TRINQ flipped to a sell.
BPCOMPQ improved and moved higher, but is still just below that upper bollinger band. It remains on a sell unless it can penetrate that BB to the upside.
So we now have 3 of 7 seven signals on a buy, which keeps the system on a buy. I would really like to see BPCOMPQ get back above that BB. As long as it remains on a sell the sentinels are much more susceptible to issuing a sell signal on weakness. I'm thinking we may be close to an intermediate term sell signal, but I'm expecting at least one more surge to new highs first. And not necessarily as a one-day event either. But that's speculation on my part as the SS have the final word on that. That's it for this evening. See you tomorrow.