Major Stock Market Averages Find Some Support And Close Near Their High Of The Day

The Nasdaq bounced back above its 50 day moving average today on higher volume, rising .98%. The SP 500, SP 600, and SP 400 (lol, no particular order) rallied between .3% to .8%. Volume also rose on those indexes too.

This was nice to see after such an ugly down day yesterday. Markets rallying on higher volume a day after being hit with a distribution day is very positive for the overall health of the market. It was a good day but it still hasn't changed the sub-intermediate and short term trends of the Nasdaq. That is still down. However, the small cap and mid cap indexes remain extremely healthy and are still in strong uptrends.

The big-caps showed some strength today. If you remember, I mentioned that last week I noticed that rotation into big-caps from small-caps was starting to become obvious. Today showed that again as big-caps outperformed small-caps. DELL and CSCO come to mind as two obvious big-caps from yester-year getting a healthy uptick.

We shall see how this plays out. If a rotation into big-caps is happening that means that we could be starting the last leg of the multi-year rally that started in October 2002. But I think I am looking too much into the future now. It is a bad habit I get from watching CNN and monitoring chat rooms. I should stop both.

Good luck out there.

New Swing Longs: LSI

New Swing Shorts: NONE

Longs Outperforming Market: STMP-29% MFLX-144% RVSN-34% OXPS-80% KNXA-28% SIRF-140% KLIC-39% MESA GMXR-218% KEX TGB VSEC-39% PETS-137% NVDA-49% LDSH-57% ORA-65% MNST-38% STX PHX CIB-26% IHS-25% TMI CLZR-38% PKE DB FFIV PRPX PAY NTG ITRN JBL LEND KEYS-27% NDAQ-285% XRTX ATHR-54% SAY BEAV-30% IKAN-27% SPWR-34% WBMD QCC MORN ADLR-49% ARXX CNXT-36% BGC-40% EVST-43% MSPD-35% TVIA DDD-54% SPSX-25% RBAK-171% ALY-42% LCRD-64% CPST WIRE-103% HOMS CDE EDS VRTX-177% ROK DEZ-101% CTXS AKS TXI AU-28% NTO STD PPCO-26% BE LWSN RADS BGO STXN-36% HSP-29% MYE GNBT BCO-28% ACR-77% UBS SILC-81%

Shorts Outperforming Market: NONE

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