Last Sunday night I posted:
“With the major indexes so oversold, it is very possible that they will bounce on Monday. IBD reports that the put/call ratio was 1.19 on Friday, showing extreme bearishness among option traders, and at a level at which bounces typically occur.”
IBD has now called the beginning of a new market up-trend, after a very brief market correction. The key question remains as to how far this bounce will go. No one knows for sure, but with end of quarter and year end mutual fund window dressing almost upon us, we could see some strength for a few weeks. The QQQ closed at 113.98 but there is considerable resistance not far above, around 116. I am also concerned with AAPL’s continuing technical weakness, although it did find support at oversold levels on Wednesday.
TC2000 sent me an alert for a GLB by ALKS on Wednesday. ALKS rose to an all-time high on above average trading volume.