Although volume was light and the S&P 500 traded in an extremely narrow intraday range, it was a solid day of gains for the indexes. Stocks held steady after a gap-up open. Breadth was around 6,000 gainers to 1,300 decliners.
Interestingly, less than 100 stocks hit new 12-month highs, which is a function of both the recent corrective action and the fact that few stocks are now technically extended. There is plenty of room to run before individual stocks start hitting significant upside resistance.
The indexes are producing some "V"-shaped action and when that occurs, those resistance levels tend to not work that well. The S&P 500 did stop right at its 50-day simple moving average, and it will be instructive to see if that can be dealt with after a little rest.
The bears will grumble that this is just a routine bounce, after a sharp correction and should not be trusted, but this market has consistently kept running up when this sort of action begins. V-shaped action is now the norm rather than the exception.
One thing that makes me more confident about the market is that the individual stock picking that I have been so positive about is continuing. This is a market where stock selection, charts, and fundamentals matter and that is a good thing.
Although there were some big point gains today, the action was a bit dull and even felt a little complacent, but this is positive price action and that is all that really matters.
Have a good evening. I'll see you tomorrow.