The recent sharp drop in September and October suddenly seems very distant in memory!  Since the intraday low on October 15 when SPX touched 1820, the broader market has rallied back with vengeance and set new all-time highs for consecutive days! 


Nasdaq also continued to push higher, even stronger than the broader index.  But, it still has a little distance to go to catch its all-time high set back in 2000.


Comparing SPX to Nasdaq, we can see that both experienced a V-shaped recovery.  Another quick pullback also happened back in July/August, although that one was much shallower.

This week, SPX seems to be slowing down a bit, trading in a narrow range.  But, Nasdaq is still gliding up.  We have been trading small, as things have been range-bound in volatile trading.  I think it is good to hold cash right now.  We need to be patient and wait for clearer signals.

Good night and HappyTrading! ™

Print Friendly, PDF & Email