As the title of today's blog suggests, what's been working of late is buying support and selling resistance, and today's follow through action to the upside reaffirmed that strategy as the broader market posted gains across the board, although the Nasdaq led the majors for the second day in a row.
There was no big news today (that I'm aware of), although Europe remains a potential catalyst for market moving headlines. But given the choppy conditions of today's market it seems reasonable to assume that caution is still very much alive.
Here's today's charts:
NAMO and NYMO moved higher for the second day in a row and are now back in positive territory. They also flipped back to buy conditions.
NAHL and NYHL also improved and flipped to buys.
TRIN and TRINQ remain in buy conditions and moved away from their overbought condition a bit.
BPCOMPQ tracked just a bit sideways and remains on a sell.
So the signals are mixed again, but more bullish overall now that the market has posted a second straight day of gains. Officially, the system remains on a buy, but the unconfirmed sell signal from last Friday still stands as a potential warning.
So nothing has changed in my view. We remain in a trading range and subject to news driven action. I'm tempted to believe that the downside is limited at this point, but I don't see this market running away to the upside either.
