THE CHARTS
After 2 to 3 days down following the prior Friday upside gap, downside that did not look very upside positive after Tuesday, stocks resumed the third bounce.
There were clearly leaders, e.g. SOX, while others more or less followed along. SOX is on the run upside while the others are up, but of course face more upside resistance challenges as they resume the climb higher.
Nonetheless, the indices are doing exactly what they need to do and they have some leadership from semiconductors, financials coming back, and of course, software.
SOX clearly led upside, surging Thursday to a new recovery high and Friday as well.
NASDAQ was pulled along by SOX' performance, moving Friday to a new closing high on the recovery -- by a slim margin.
DJ30 moved to a new recovery high as well, just eclipsing the prior recovery high a week prior. DJ30 did fall well off the Friday intraday day high to close, taking some of the luster off the move to near the 200 day SMA at 25,000, the next resistance point to take on and overcome.
SP500 gapped and rallied off the 3-day test, moving intraday past the prior week's closing and recovery high. SP500 faded to close just below that prior high. Volume was up but still below average. The move was upside positive but not definitive, a good rebound off a test of the attempt at a new leg. Now it just needs banks to continue and lead the way higher.
Source: Investment House