At this time last week, the S&P 500 was at 1066. Today it closed at the same level:
Today's rally was more impressive in my view primarily because if leadership by Russell and Nasdaq - an indication not only that the gains would be sustained throughout the day (which they were) but also as a sign that the risk trade is back on. I also liked the fact that 90% of the stock screen machine stocks posted a gain on the day. Remember, I monitor that closely for confirmation of what we see in the major indexes and that's a good sign. Finally, both the Nasdaq Composite & S&P 500 also reclaimed their 50 day moving averages. The only one below that right now is the Russell 2000 which coincidentally was the strongest performer today.
Unfortunately, today's uptick also removed the oversold condition we've been working with since October 28th. This is not unexpected as you know, but clearly offers an interesting setup into the jobs data.
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