The broad based rally on hopes that Greece's debt deal would be finalized pushed all of the major averages to solid gains Monday as the advancing stocks led the decliners by almost a 3-1 margin. The Nasdaq 100 led the way up 1.72% followed by almost 1.50% gains in the S&P 500 and the Russell 2000. The VIX dropped another 18% after a similar drop last Friday. There has been some improvement in the technical studies as the daily NYSE A/D line has moved back above its WMA but it is still below its short term downtrend. The McClellan oscillator has risen to +173 which is its best reading since last October. This combined with the high ARMS Index reading of 3.23 last week is a sign that I may have been too skeptical of the rally potential last Friday. We will be better able to ascertain the strength of the rally once we get the first pullback which should happen this week. Even if last week's rally is able to push the market above the previous highs, sector selection will still be the key.
 |
| READ THE ORIGINAL POST AT www.forbes.com |
