Good Morning everyone!
What can I say but "what a day it was". The SPX is above the 200wkma, breaking out, as are many of the sectors and emerging markets as well but the biggest mover are in Silver, Gold related stocks and other commodities softs and hard.
Notice the volatility squeeze, the" pinch and pop"!, this is a rare and powerful signal. Look for more gains in the near term, buy dips!
Lets look inside the SPX. The post-Fed session began with a huge ten point gap higher and simply never looked back all day as bears were simply torched all day long. There was no escape for shorts as the few pullbacks were shallow and almost meaningless; there were no sellers.
Yes, the equities are overbought. But that does not mean to sell or to short the market. The largest moves often come at the most extremes of overbought and oversold.
Event tough most sectors are giving a buy signal, except for the XLF This does not mean to rush out and Buy tomorrow morning. But it does tell us to exit shorts (if you have them) on any pullback; dips are bought until the momentum turns.
For the SPX Index there were 454 Advancers/35 Decliners. On the NYSE 3,135 issues were traded with 2,569 advancing issues and 493 retreating issues, a ratio of 5.21 to one advancing. There were 569 new highs and 5 new lows. The five day moving average of New Highs is 219 while the five day moving average of New Lows is 11 and the ten day moving average of Net Advancing is 476. The Net Advancing data indicates a bullish trend.
Advancing volume was higher at a ratio of 9.16 to one. The closing TRIN was 0.57 and the final tick was 1182. The NYSE Composite Index gained 2.29% today while the SPX gained 1.89%.
For the NYSE, relative to the previous 30 session average, volume was 31.34% above the average. Of the last 15 sessions 7 sessions ended with volume greater than the previous rolling 30 day average volume. Of the last 30 sessions, 24 sessions ended on a positive tick, 8 of last 10. For the SPX, the day's volume was 124.0% of the average daily volume for the last year. Volume was 131.3% of the last 10 day average and 119.8% of the previous day’s volume.
Breadth extremely bullish, New Highs surged, and the ten day average of Net Advancing has turned strongly bullish. The advancing volume ratio almost doubled the advancing issue ratio, the broad NYSE Composite Index outperformed the SPX and the final tick was powerful.
Total tick for the day was 322,000 and the average tick for the day was 209. There were 152 ticks greater than 600 and no ticks more extreme than -600. There were 2 ticks greater than 1000 and no ticks more extreme than -1000.
Intraday volume surged on the up moves at the open and the close. All the breadth indicators are looking strong and most troubling of all is the Absolute Breadth Indicator which suggests that we have seen our “pullback.”
We are so overbought yet going higher! Until we won't. So until the dips are no longer bought I am not getting in front of this train!
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