Markets advanced Monday although they finished off session highs. The Nasdaq was the best performing off the big 3 benchmarks gaining .7% and more importantly reclaiming its 50 day SMA and the round 4400 handle. It was higher by 1% in the late morning hours. The S&P 500 gave back a big chunk of its early moves higher by .3%, after up by nearly .7% during the session. Interestingly the small caps behaved the best today with the S&P 600 up close to 1%. Last week remember that its 1.4% weekly advance was by far the best of the indexes, so it will be interesting to see how this turns out going forward. The only major group to decline today were the utilities, just what you want to see if you are a bull. Put the small caps advancing and the utilities falling together, and risk is on. That being said there is a declining amount of stocks above their 50 day, and it seems this move may be a dead cat bounce in the making. However that is a growing consensus in that theme and we know markets always have and always will try and confound the most. Looking at some of the bearish ETFs, the SQQQ hit a road block right at its 50 day SMA precisely last week, but it did hold the round 40 handle Monday. The SDS held its 50 day SMA today and will the third time be the charm or will it slump back below that line like it did this January and May?
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