Thursday, June 16, 2005
For the past week and a half we have discussed the 20-day average test that major indices were undergoing. Focusing primarily on tech, since it (along with the mid caps) have led this rally, we can now clearly see that the testing of the 20-day average has been accomplished with successful results. Right here and right now is where the pros will make their bets. Everyone waiting for a pullback for a good entry point in the trend will not find a better opportunity than we have right now. The QQQQ, after consolidating gains at its 20-day average, dipped below yesterday only to find a late day rally where buyers stepped up to the plate and bought shares with conviction. Note both the complimentary volume and histogram buy signal that accompanied yesterday’s high volume mid day reversal. If a new leg up is in fact the destiny of the market then this is where it will start.