Wednesday, October 21, 2009

10.21.09 - Positive Sentiment Prevails

Cumulative Tick and other internals aligned for a quick trip back to new highs after the premarket gap lower. At this point, I assume that the VWAP will therefore continue to provide support and perhaps act as a launch pad for a new assault on those earlier highs.

Militating that assumption, is that I don't like what I'm seeing in the Semis one bit, and the AD line seems to be struggling -- so we'll see. We are borderline overbought... not too bad, neutral really. However, I think it would have been healthier for the market to put in a more moderate advance to slightly down performance on the day if it is to maintain its upward energy.

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