Recovery
S&Ps were trading at 1257.50 in the late morning, near the session highs of 1260. The market is at the top of the neutral zone, outlined earlier, that extends from 1258 to 1237.50. Hourly closes above this zone would be bullish for this market.
Interestingly, we saw strong buying from dealers on the way up. At this level, however, there is a two-sided trade. What remains to be seen is if we can sustain trade over this wide neutral zone.
NASDAQ is trading at 1895, off the session highs of 1910. Strong performance in the second-tier stocks helped spur this market on, particularly as this market trade down to 1861 before making a run into the 1890s.
Keep an eye on the second-tiers as they hold the key to the NASDAQ today.