The charts say it all. The SPYs, QQQQs and IWNs all tanked after the new home sales reports. But all three staged an impressive recovery throughout the rest of the day. All three have what is called a "bump and run" formation, meaning all three markets had an upward sloping trend line which acted as support for the entire rally.
In addition, the SPYs and QQQQs all closed at/near their daily highs on a good volume spike.
This was a solid bull-based performance for the averages.
In conjunction with last week's performance, it looks like the bulls are in charge -- at least for now.
