The Wheel Is Come Full Circle

---

Quote: William Shakespeare King Lear

If this weren’t April Fool’s Day, I would say the end of day rally was a fool’s game. However, fools are just that-fools, so they cannot possibly control all the salient factors in play.

First, looking at volume, there was an accumulation day in both NASDAQ and the Russell 2000s-both of which needed to show life after lagging. It is noteworthy though, that S&P 500 made a new high close on low volume as did the Dow.

Second, NASDAQ cleared the 50 DMA. Now, in an unconfirmed Bullish phase, that must stick.

Third, the Russell 2000s confirmed the bull phase.

Interest Rates firmed too. But, that could be more a sign of relief that there is some room for firmer rates, provided they do not firm too fast.

So now that all indices and most sectors and groups are in play, perhaps we can give Michael Lewis some credit that if the markets are rigged-at least the bulls can celebrate!

S&P 500 (SPY) New high close, but not new highs. For that has to clear 188.96. And like to see some not huge volume.

Russell 2000 (IWM) Cleared the fast moving average and now has some distance to see 2014 highs 120.58. And must hold 116.68 then the 50 DMA for sure

Dow (DIA) Although this made a new high close, it has not cleared the 2014 Calendar Range-even with the recent strength

Nasdaq (QQQ) Cleared the 2014 Calendar Range and now, needs to hold the 50 DMA

XLF (Financials) If holds Monday’s low that’s good but still needs to clear 22.40 and close above to have a chance to negate the topping candle.

SMH (Semiconductors) Semis-semis semis!

IYT (Transportation) 136.89 is right there for the taking

IBB (Biotechnology) Unless this clears 245, still vulnerable although happier with the market action

XRT (Retail) Good move but still well underperforming

IYR (Real Estate) 68.85 is the real place now to cross but this has been better lately than how the year began, even before the market came back

GLD Weakened but has not violated key support at 121

USO (US Oil Fund) Broke the 200 DAM but held the 50 DMA-interesting to see what happens now

XLE (Energy) Nice new highs again

XOP (Oil and Gas Exploration) New high close

UUP (Dollar Bull) Hasn’t closed over 21.50 since late February-good point to watch

KRE (Regional Banks) Nice looking as it negated the topping candle