The NASDAQ and S&P 500 have continued to make healthy progress since the last report and the distribution count remains low at 2 days on both major indexes, which is considered low and not at all a concern.
Fortunately, the list of fundamentally sound market leaders, with accelerating EPS and sales growth, that are forming constructive bases has continued to expand, which is the single most important factor when it comes to the sustainability of an uptrend.
However, extreme volatility has made progress difficult. So, be very selective, start small and scale in, but only if progress is being made.
Always remember, “buying right” is our first line of defense and a major component of sound risk management, so remain disciplined and wait for perfect setups to emerge. Never chase!
The NASDAQ has continued to make constructive progress above its 50-DMA since the last report and finished yesterday’s session just slightly below prior all-time highs.
The small-cap Russell 2000 powerfully reclaimed its 50 and 200-DMA’s over the last couple weeks and is now beginning to consolidate in a constructive manner, slightly below its next area of resistance at the 1,600 level.
The S&P 500 has formed a constructive base above its 50-DMA over the last few weeks and is now just a hair away from making new all-time highs.
The DOW has formed a constructive base above its 50-DMA over the last few weeks and is now trading slightly below prior all-time highs.