About Shark Watch
Thursday, August 28 - 4:52 PM
The major indices were able to follow-though to the upside, closing at the highs of the session and regaining some of the technical ground it had lost over the past several weeks. Although volume was very light once again, only one major S&P sector, energy, closed in the red (although it did finish well off the lows of the session) while financials ran up almost 4%, trailed closely by industrials and consumer discretionary, which both advanced by more than 2%. The broad-based strength, meanwhile, was quite bullish, and ended the day well over 3:1 to the positive.
We mentioned earlier in the week that some basing action in this thin trading environment might just be the thing that provides the sort of base from which the market can move higher once traders come back to their desks and volume comes back into this market. It’s just too difficult at this point, however, to put too much trust into today’s action, which was likely aided by the thin holiday trading. We’ll see if the bulls can move us past lateral resistance levels and keep the intermediate uptrend which began last month intact, but in the meantime, we’ll continue to keep our positions small and our time-frames short.
Have a great evening and we will see you tomorrow.