Key Bounce Off Of Short-term Support

When you have a 15 point pullback in today’s market over a 3-day period, it becomes a ‘Generational Bottom’ or better yet, a ‘Generational Buying Opportunity’ for the bulls. Yesterday the market had a solid rally, a bit unexpected, as I didn’t think much of the market with it being a shortened holiday week.

Nonetheless, the market moves to its own drummer, and once again, the indices led higher with small caps at the helm for once. The laggard in all of this? The Nasdaq.

Large caps didn’t do much better, particularly the Dow 30 like Apple (AAPL), and other big tech names like Amazon (AMZN), Facebook (FB), Netflix (NFLX),Microsoft (MSFT) and Google (GOOGL) slacked off big time.

Though if this rally sustains itself, I think the Nasdaq will take the lead role once again and the names I just mentioned will likely be the main drivers of the market rally just as they have been that for most of the past 7-8 months.

Some solid improvement in the T2108 indicator appeared as it managed to rally about 22% yesterday back to 53% from the low 40’s and sub 40’s the day prior.

VIX is back down to the sub-10’s. Further backing my theory of late that any rally in the VIX is simply a sling shot to price action to help the indices ultimately push higher yet again.

So, despite a bad employment number this morning, the market still looks to open up slightly higher for some potential follow through.

S&P 500 Chart