Locked, But Not Loaded
Nice looking rally. But unless we see volume pick up on the up days we’ll consider any rally suspect.
With the major indexes poised to test their 200-day moving averages it looks like the bounce we we’re looking for is coming along.
Before jumping on the Bull wagon, we want to have confirmation via a Follow Through Day, where a rally of at least 1.7% on at least one of the major indexes with volume greater than the day before gives us indication that institutions are on board.
Sharp rallies are not uncommon in Bear markets. We’ll believe Wednesday’s action was just that until we have reason to believe otherwise.
Bounces off lows in Energy names were big drivers for the S&P 100 as Haliburton, +12%, Schlumberger, +9%, and Conocophilips, +4%, helped lead the action.
For Growth Stocks, nice moves from the likes of Deckers (DECK), Chipotle (CMG) and Mercadolibre (MELI) keep the fire alive. Breakout watch stock Ulta Salon (ULTA) held within its technical base.
New research on Growth Stocks is posted on our site today.