By: John Darsie of T3Live
US stock futures point to a healthy up open on Wall Street after yesterday’s reversal off the 50-day moving average. Yesterday the market was weak early but the reclaimed MA acted as support and we rallied hard right into the upper end of the three-day range. Overnight Investor’s Business Daily put us in a “Confirmed Rally”, which is usually a positive sign, but also a signal that the market could use a little bit of rest.
At this point, we have gotten big move off the lows and new market leaders have emerged based on relative strength during the pull-back. When a correction takes place, it’s important to see what stocks hold above moving averages, as those are usually the first ones to bounce. Now it will be interesting to see some of the weaker groups can also perk up and participate in this move back to the highs.
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