The comments below were provided by Kevin Lane of Fusion IQ.
What can we say about this tape other than what our title says, Resilient, resilient, resilient …
Why do we say this ? Well, one only has to look at the internals yesterday where the NASDAQ scored an up- to down-volume ratio of 8.24:1 with over four stocks (4.22) advancing for every one that declined. Not to be outdone, the NYSE scored ratios of 7.50 to 1 on up- to down-volume and also had over four stocks (4.18) advance for every one that declined. With ratios like these it is hard to call the recent pullback anything other than that.
Tech remains the most attractive area of the market as its issues have the largest bases (i.e. floors) from which to advance. Within tech we are seeing a shift towards the largest cap names that have been out of favour for quite some time (i.e. CSCO, ORCL, DELL, QCOM, etc.)
As long as internals remain like this it is hard not to honour the uptrend we are still in off the lows.
Source: Kevin Lane, Fusion IQ, June 26, 2009.
