The major averages scored a follow-through day (FTD) on Monday 11.09.2009 after the G-20 agreed to maintain its massive economic stimulus package as the global economy continues to recover. This sent the US dollar tumbling and a slew of stocks and commodities higher. Volume, a critical component of institutional demand, was higher than Friday’s levels as the major averages rallied which was helped produce a sound FTD day and confirm this week long rally attempt. In terms of new leadership, it was encouraging to see new 52-week highs outnumber new 52-week lows on the NYSE and Nasdaq exchange.
Make no mistake about it- this market is strong! Every pullback since the March lows has not exceeded -8% and the bulls have promptly showed up to quell the bearish pressure. The latest correction began on October 28, 2009 and ended today on November 9, 2009 when this rally-attempt was confirmed. To avoid any confusion, the official status of the market changed from “rally attempt” to “confirmed rally.” Now that the market is back in a confirmed rally, growth investors have a green light for accumulating stocks when they trigger fresh technical buy signals and break out of sound bases.
Chart Courtesy of Stockcharts.com