We went to the brink and turned back, so the up-trend remains intact. It is still a weak rebound, however. There were only 40 new highs but 237 new lows on Wednesday. Only 57% of all U.S. stocks rose, but 90% of the Nasdaq 100 stocks rose. So this is yet again a lop-sided rally, primarily among growth and tech stocks. This daily chart of the QQQ (Nasdaq 100 stock ETF) shows that it held its lower Bollinger Band and climbed back above its 30 day average.
The GMI rose to 3 and therefore did not flash a Sell signal. We will have to wait to see if this renewed up-trend can sustain itself. I own a little TQQQ and will add to my position if the QQQ holds. Only two stocks came up in my scan for stocks at new highs with strong recent earnings—SWKS and UTHR. Both are above their green line break-outs. Check out these weekly charts.