Markets staged big reversals Tuesday, as Tuesdays remain the strongest day of the week in 2014. The Nasdaq once again underperformed, perhaps when I stop bringing it up it will cease doing so, but has to get the MVP, bouncing precisely off its 200 day SMA. Its intraday range was over 100 handles and it closed well into the upper half of the daily range. For the second straight session it ended the day strong, bullish traits, akin to a deep closer smartly waiting for the right time to sniff out the finish line. At the depths of its lows today it was down almost 2%, briefly meeting the criteria for a correction of being lower by 10% from most recent 52 week highs. The S&P 500 closed the day right at 50 day SMA resistance. Do I think this downtrend is over? I do not, but my opinion matters none. The tape is saying perhaps we run higher from here and I am long small, but I have not seen so much conviction on the Twitter stream of how we are almost guaranteed to head much lower. That type of skepticism is where bottoms sometimes form, when most investors feel the same way about a markets direction. A peek at some of the top performing sectors shows groups that are essential to a thriving economy. I do not fell that myself, but stocks are saying something different at the moment with energy, transports and chemicals all holding their own and then some. After that spiel we probably go back down tomorrow.

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