The major market indexes remain in melt-up mode. A lack of negative news combined with the image of the Fed as a flock of doves keeps things moving higher. The rally is persistent at least from the standpoint of the indexes, since we did see at least one leading area come under selling pressure this past week.
A jobs number that was much like Goldilocks’ perfect porridge, not too hot as to provoke the Fed out of its dovish stance and not too cold as to conjure up images of an economy screeching to a sudden halt, kept things percolating higher on Friday. The NASDAQ Composite Index led the other indexes to higher highs, albeit on lighter volume.
While the indexes melt to higher highs, the market’s broadest leading group, cloud-related software, took a group hit on Thursday. As I blogged on Thursday evening, every name on my cloud watch list was sold that day, some in brutal fashion. A case in point would be ZScaler (ZS), which busted its 20-dema on big selling volume. There was no news to account for the move, but an alert short-seller could have jumped on it at the time of the breach.
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