The markets popped today, putting a temporary end to the recent sell off. All of the major indexes have put in a swing low now, however, the Nasdaq (QQQQ) and Russell 2000 (NYSEARCA:IWM) are relatively weak to the S&P 500 (NYSEARCA:SPY), Financials (NYSEARCA:XLF), and Dow Jones Industrial Average (NYSEARCA:DIA) on the daily time frame. If the bulls want any hope of continuing the March 2009 rally past March 2010, the next swing high better not be lower than the last. That would be bearish to see and would provide more confirmation for the markets rolling over here.
The dollar (NYSEARCA:UUP) appeared to be breaking above a resistance line as well as the 200 day moving average on Friday, but has pulled back under the resistance this week, therefore registering it a failed break out. Gold (NYSEARCA:GLD) has marked an equal swing low to the last swing low and may form a double bottom formation here. It is not a confirmed double bottom yet, on gold, and there is a bit of resistance to fight through on the upside. If gold continues to rise and the dollar continues to drop, that will help push stocks higher.
The VIX dropped 5% today, which is more than enough to confirm the 1% pop in the general markets. The TRIN and TRIN/Q were both very bullish today. The TICK and TICK/Q corroborated the move nicely.
Thanks for being a part of Swing-High.com! Always trade with a stop loss and manage your risk appropriately! Also, be sure to check earnings dates for stocks you are trading and/or watching. It is prudent not to hold over earnings. Finally, it is a good idea to regularly check the Bloomberg Economic Calendar and sites like Yahoo finance so that you know the major headlines that may move the markets.