A week full of soft closes, where the market started up in the morning and stalled to close down or well off its highs, ended on a more bullish note on Friday as all the major indexes achieved higher closing highs. The NASDAQ Composite Index led the charge with a 1.77% gain on slightly lighter volume.
The S&P 500 Index also posted a higher closing high as it regained its 50-dma on lighter volume. Despite the higher closing high, it remains in a five-day range as it consolidates the prior move up from the absolute lows of two weeks ago. As I tweeted on Friday, the indexes weren’t looking all that negative despite Wednesday’s somewhat bizarre and negative reversal that looked quite bearish at the time, and were in fact consolidating prior gains.
However, the lack of volume might be a sign of a continuing oversold melt-up rather than robust accumulation of stocks in anticipation of a longer-term uptrend, but for now we’ll just have to let the stocks tell their story.
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