Despite the lack of volume on the indexes, we are starting to see the percentage of stocks that trade above their 10day moving average rise back to more bullish levels. I consider the +80 level to be an area where momentum trading is best rewarded and we have reclaimed that level on the NYSE (86), with the NASDAQ (74), not far behind.
The real question that is going to be on many trader’s mind is whether or not the Dow is going to make a double top or not. The stage is definitely set with the Nasdaq seriously under performing of late but it’s far to early to call that pattern yet.
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