Here's the FindLeadingStocks.com Morning Report.
Good Morning Team,
- Little Bounce...The market enjoyed a little bounce on Wednesday which is always a welcomed sign. It was not enough to score a Follow-Through Day (FTD) which is needed to confirm a new uptrend. As of this writing, (5:30ET) futures are down and giving much of the bounce back. Let's see where we close today and tomorrow.
- Day Count: The Nasdaq Composite & Nasdaq 100 (QQQ) did not take out their recent lows which means Thursday will be Day 6 of a new rally attempt. The other indices took out their lows on Tuesday which reset the day count, making Wednesday Day 1 Of A New Rally Attempt for the Dow Jones Industrial Average (DIA), S&P 500 (SPY), Russell 2000 (IWM), and Mid Cap 400 (MDY). The window is currently open for a new FTD for the Nasdaq and Nasdaq 100 and, providing Wednesday's low is not breached, will open on as soon as Friday for the other indices. If, at any point, the recent lows are breached, then the day count will be reset.
- Bulls Are Trying To Defend Support: The Nasdaq 100 remains the leading index this year and the bulls are doing their best to defend support. As long as the QQQ stays above $351.36, the window is still open for a new FTD to emerge.
Charts and Data are courtesy of MarketSmith Incorporated. Join MarketSmith here.
- Dearth Of Leaders: The main concern I have with the market right now, even if we get a FTD is the dearth of leaders. I'm still maintaining a mostly defensive stance but I am very ready for a nice, and overdue, rally!
- Stay Focused: When the market is pulling back it is perfectly normal to want to look away but that is exactly the time to be focused. Why? Because history shows us the best time to buy is in the early stages of a new rally. The earlier in a new rally, the better. The problem is that most people lose interest and miss it. I've made that mistake many times before and learned from it. It will not happen again. That's why I do this work every day and share it with you. I want to make sure my finger stays on the pulse. This way, when the environment improves, and it always improves, we will be ready! Remember, we have the always "fun" jobs report tomorrow and then we dive into earnings season. Take your time. If the market cracks open and crashes, we are out of the way. On the other hand, if it rallies, then we will be ready. Stay engaged.
Have a great day!
Adam
