Last Wednesday I remarked that a strong rally to end the week was unlikely. The next day we promptly had a strong rally, which kept index charts in a bullish orientation. At this point, I do not see a great edge in either direction. In my mind, the end-of-quarter window dressing will be a non-issue after tomorrow, and then we'll get a better idea of market direction. We really have some mixed signals here.
- SPY got a boost on Thursday, pushing it above the 50 and 200 day moving averages, and maintaining a higher low. One could make exactly the same comment about IWM and QQQQ.
Looking at individual sector ETF's, things are not quite as rosy, with several trading below important moving averages, and new lower lows in place:
- XLI
- XLB
-XLF is not in the lower low camp yet, but neither would I call this a bullish chart. This is the one I am watching most closely.
- IYT: The transports are providing a mixed picture, trading below a double top, and just below the 200 day moving average, but as of yet not setting a lower low.
