It is often said that it is not the news that matters but rather the way the market reacts to the news.
Following a sloppy few weeks and deterioration in both our short and long term indicators, it appears that once again this pullback will be more shallow than many expected (including us). However, given the reversal from a retest of lows yesterday, and the follow through day we are seeing today, it appears that Nasdaq 100 bullish percent will turn back positive by day end along with most of our short and intermediate term indicators.
Nasdaq 100 (QQQ) Bull flag reversal
Following the overnight sell off Monday PM / Tuesday AM, US equities rallied through the day to show just how resilient the current market is. The US dollar tested new lows vs. Euro and also reversed ending positive for the day.
True leadership shows it’s face by being the first group to regain its footing after a sell off. The follow through rally today taking us above the recent range is a solid tell that the bull market is resuming in part lead by Semis, Software, Cloud and most important AAPL.