I wrote over the weekend that I wasn’t seeing anything that compelling on the long side. I’ve already discussed in the last two reports the idea that most of these U&R long set-ups that occurred 2-3 weeks ago have run their course in the near-term and that this set up the potential for a market pullback, or at least some backing and filling.
We’ve seen a bit of that over the past few days, but the action is perhaps a bit more erratic than I might be looking for. The NASDAQ Composite Index gapped up sharply yesterday on the heels of a strong earnings report from Alphabet (GOOG), charging nearly 87 points higher while the NASDAQ 100 Index pushed over 100 points higher. But by the close, the NASDAQ’s gains had evaporated entirely as the index ended the day down -1.10.
A broad number of stocks posted high-volume reversals, which, when paired with the index action, looked quite bearish. This morning the NASDAQ rallied and then sold off, with the NDX dropping into the red. But the prior day’s bearish reversal was quickly erased from the market’s memory and we were again off to the races.
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