Monday, May 4, 2009
The SPYs continue their move higher. Most importantly, today prices moved through key resistance levels. Also note the 200 day SMA is in reach.
The QQQQs have advanced beyond the 200 day SMA printing a strong bar today. The bullish orientation of the SMAs (shorter above longer, all moving higher and prices above the SMAs) continues.
The IWMs advanced through key resistance today with a strong bar.
The bottom line is I still don't see the fundamental reason for this rally. At best the fundamentals are weak. But it seems as though traders are moving in solely in anticipation of a recovery without really considering the fundamentals. In addition there is probably a bit of short-covering going on as well.