Market Reclaims 21-Day Moving Average
The market bounced back Thursday, recovering from two days of selling to take back its 21-day moving average. The Nasdaq was weakest index over the last two days of selling, and today it bounced back the strongest, surging 1.39%. The S&P got as high as 1449, which is the spot markets broke down from on Tuesday. Bears should try to protect this spot. It's been a spirited move that took out yesterday's highs of 1441.
Today's bounce is a welcome sign for those looking for the rally to remain on track. By reclaiming its 21-day MA, it keeps bullish composure intact and reduces the likelihood of a deeper correction. The next key resistance stands at 1460-1463
Banks helped to lead the rally today, as did some tech stocks.
Apple (AAPL) was the most notable trade on my radar today, as it staged a textbook Red Dog Reversal to give us a calculated entry to buy the dip. The beauty of the strategy is that it presents a tight, defined stop-loss point and perhaps large reward in a counter trend move. It was nice to see AAPL repair some of its short term damage, and it should help the market bounce back further as well.
Gold (GLD) and Silver (SLV) remain very impressive.
*DISCLOSURES: Scott Redler is long SPY, GS, AAPL, LVS.
