Good evening StockBandits!
On the heels of Monday’s successful support test and subsequent rally, stocks staged a solid day of continuation today. A gap higher this morning led to a trading range for much of the day, but steady afternoon strength added to the early gains to combine for some pretty impressive numbers by the closing bell.
Energy led the way, as many names in the group have been under substantial pressure since last summer and finally are seeing some relief with a lift. Whether that’s signaling the end of the downtrend or simply a bounce is unclear, but it certainly helped the broad market. It’s funny how this market is having it both ways when it comes to energy. When oil was sliding lower, it was “a pay raise” with lower prices at the pump, effectively creating more disposable income for the consumer. Now with oil bouncing back, it’s boosting the market as well as a sign of economic health.
As for the market, we’ve rallied sharply within the range, but we’re still in the range! With the DJIA tacking on 300, it’s easy to feel like we’re really going somewhere now – and we might be – but a breakout has yet to take place. Throughout this trading range, the expectation of continuation has been for suckers. That may change soon, but let’s let the market prove it before buying with both hands.
Let’s get to the charts.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
