The S&P 500 dropped 20 points below the 200 day MA at 2615 on Thursday May 3rd before it reversed to the upside and closed at 2639. The buying continued on Friday May 4th and the market's strong close was impressive .
The market internals were strong with 2239 stocks advancing and just 746 declining. It was an encouraging sign for those who think the correction from the January high is just a pause in the market’s uptrend.
The Nasdaq 100 was up 1.90% for the day while the small cap Russell 2000 and S&P 500 were up close to 1.3%. This may be an early sign that the worst of the selling is over but further improvement is needed to confirm that the market’s correction is over.
In this weeks Forbes.com article I discuss the Five Most Oversold Dow Stocks as many major stocks have now reached important chart and Fibonacci support.
Two of the ETFs that Viper ETF clients have been buying (see below) did well on Friday with XLK up 1.9% and XLY up 1.3%. Once all the A/D lines turn positive it will be a time to become a more aggressive buyer.
If you are interested in buying once the correction is over I hope you will consider a subscription to the Viper ETF Report or the Viper Hot Stocks Report.
Comments
comments