Technically, the market continues to act in a bullish manner, even with the divergences out there. Today was another example of the importance of using a 9 or 10 day moving average on your charts - both major indices bounced right off those levels this morning. The markets are still below Friday's highs but that could be just a matter of time given today's action. We're not really overbought short-term either so a breakout could work again here. The Russell 2000 and financials continue to underperform drastically as neither has broken through their resistance levels yet, but it hasn't mattered much to the other two indices - maybe it won't ever matter.
S&P 500, Nasdaq
Russell 2000 and XLF
I didn't make any trades today but hopefully some of you were able to catch some of the move in CGNX today. This was highlighted in the weekend video and was up a nice 16% on higher guidance. This is one of those plays that not being around a computer intraday makes almost impossible to play. I did put a limit order in on BIDU last night to short at $108, but that wasn't filled (although it did gap and reverse like I wrote about last night).
Instead of writing much more, I figured I would just share a few charts to wrap up here that are worth watching. I have others (KNDI, FVE, VPG, AHD) but they are very, very thin. The action today was bullish so it looks like the market wants to keep moving higher - no need to fight it. Good luck Wednesday.
Charts from Telechart, Courtesy of Worden Brothers, Inc.