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Stocks Return to Recent Short-Term Highs

|Includes: DIA, QQQ, SPDR S&P 500 Trust ETF (SPY)

The S&P 500 index closed sharply higher for a second straight session today, returning to recent short-term highs of the oversold reaction from mid-June.

Today's rebound indicates that the beta phase advance of the current short-term cycle is still in progress. However, the oversold reaction off of the Beta Low (NASDAQ:BL) on June 16 continues to track the bearish scenario that we outlined earlier this month and stock market behavior during the next several sessions will likely provide a meaningful signal with respect to intermediate-term direction. We will identify that signal when it occurs in our daily market commentary available to subscribers.

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