Wednesday, May 27, 2015

Whipsaws for everyone!

The Market Trend Model (http://bitly.com/M_Trend_Model) continues to show a positive bias as the stock market whips back and forth to grind up both bulls and bears on a daily basis.  Just one day after the Nasdaq was slammed down to its recent breakout price level, this index closed at an all time high on Wednesday.

Yesterday's price action appeared to show the stock indexes would be unable to hold the recent May breakout.  But, as has been the case for months now, volume spikes to the downside often bring in the dip buyers and the market snapped back sharply today.  Today's volume was mixed with Nasdaq trading volume expanding while S&P 500 and Russell 2000 volume was much lower than Tuesday's volume.

While the "big picture" shows a market in an upward trend, the granularity of the stock indexes show little price progress in the last three months.  On days like Tuesday's crazy sell off the indication is the stock market is under distribution. However on days like today the market appears to want to grind higher from current levels.  Which market will appear tomorrow?  Only tomorrow will tell.

Remain mindful that anything is possible from one day to the next.