I wrote over the weekend that, “Friday’s action had the feel of a low-volume shakeout on the fifth day of a sell-off from the recent highs.” The action so far this week has confirmed that assessment. If there has been any wrinkle to the trading week it has been the fact that big-stock NASDAQ names have been surging, led by Apple (AAPL).
The stock was upgraded on Monday, leading to a gap-up move on average volume. This did not qualify as a buyable gap-up since volume was nowhere near where it needed to be for a BGU. Nvidia (NVDA) announced they were buying Mellanox Technologies (MLNX) for $125 a share, and it responded with a pocket pivot off the 50-dma and up through the 10-dma and 20-dema on Monday.
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