Just One Thing Is Missing…

The
S&P 500 seems ready to move higher except for the one component I
have been repeatedly talking about for the past month: volume.

 

 

The S&P 500 pushed its way
back above its 50- and 200-day moving averages.  The NASDAQ has managed to
advance, but is nowhere near the S&P 500 levels and is still the leading, or
lagging index.  If the NASDAQ gets hit with another wave of institutional
selling, it does not have the volume to absorb it.  For now, taking quick
trades or avoiding this market altogether is the
best way to go.

 

We have seen a few stocks
break out.  MBT managed a move higher, but is far from a market leader.

 

 

Accredited Lenders
(LEND) tried to break out but is having trouble.

 

 

Pulte Homes (PHM) is
consolidating its breakout a couple bucks above its pivot of 57.85.

 

 

Breakouts seem to be
happening while the market has stopped dropping, but with very little
conviction.  Until the light trading passes, it may be best to sit it out on
the sidelines.