The Market Trend Model (data sheet) remains with a mixed bias as the Nasdaq (chart) and the Russell 2000 (chart) emerge as the leading market indexes while the Nasdaq-100 (chart) and the S&P 500 (chart) continue to lag.
On Tuesday the market indexes appeared to be falling into the abyss of a new down trend only to snap back by the end of the day when the dip buyers came out in full force. On Wednesday the market indexes surged to near 52-week highs as buyers continued to push stock prices higher. Despite the renewed buying surge in the middle of the week, profit takers stepped in on Friday to push the market slightly lower.
The stock market continues to be a mixed bag of optimistic buyers and panicked sellers from one day to the next. The mixed bag effect is no doubt reflected by the fundamental underpinnings of the current world economy. Barry Ritholtz (@) succinctly lists the most recent positive and negative economic events from last week in The Big Picture (blog) post "Succinct Summation" (article).
As has been the case for some time now, it appears the bulls are waiting to see if the proof is in the pudding while the bears are waiting to see if the proof is in the putting. Some time soon we all will know if we are eating chocolate pudding or crumble pie.
"The proof of the pudding is in the eating."