With 1 trading day left in the quarter, 3 of the 4 sisters have recovered from the Mid-March selloff and broken their short-term bear trend. Actually, the youngest sister – RUS – hit new highs for the year yesterday. The only index still beneath the Aug-Mar intermediate-term trend is the SPX.
A complete recovery of early March’s downdraft, combined with lackluster volume and all the economic, political and catastrophic events of late remain lingering in my thoughts as the technical picture attempts to change once again.
But, as stated yesterday, this action by no means gives an ‘all-clear’ signal for the bulls. In fear of sounding like the conventional pundit reiterating the phrase coined by Greenspan in 2003, cautious optimism would be the term to describe today’s technical condition. I’ll leave you with this last non-technical thought; I sincerely hope the latest climb is not due to fund positioning for quarter end. If it is, look out for the 1st week of April.
Good Luck, Pick your entry points carefully and keep short stops.