SPY and QQQ tested their 200-day moving average last week and survived. Both are back near their declining 50dma. The question is does this rally have more room to move or is it just a bounce within a big range?
While the 52-week high list is still thin and dominated by mostly defensive plays like REITs and utilities, there are still enough stocks that are acting constructively – Apple, Lululemon, Nike, semiconductors, homebuilders. There’s enough strength not to get too bearish.
There is not enough evidence to get aggressively bullish either. US Treasuries and gold are still looking strong, which is an indication of insecurity in the current market.
In other words, this is a fast markets for nimble traders only – intraday and swing traders. For anyone else who is active – long-term trend followers and position traders, it is a time to protect capital and confidence.
Momentum Monday: Stocks Too Strong To Be Bearish
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