A Hangover, Not So Black and White
After an opening move higher, stocks are a bit hungover from yesterday's eventful rally.
Even the gold miner ETFs, GDX and GDXJ, are finding some initial (and probably expected) overhead supply or resistance at their respective 50-day simple moving averages. Indeed, some backing and filling or consolidation seems perfectly reasonable after the spirited moves not just by the indices but also many individual stocks and asset classes yesterday.
However, bulls will want to guard against letting the action become sloppy again, if the midpoints of yesterday's price ranges on a variety of charts begin to slip away. While that type of sloppy action has certainly not been the death knell of the bull, it has been made for more whipsaws than would be ideal for swing trading. For now, we have some initial consolidation which is neither obviously bullish nor bearish, just yet.
Elsewhere, I see Oracle is gapping up after earnings, always a late-season reporter.
The long-term chart, below, is fascinating, as the mature tech giant is threatening to clear its dot-com bubble highs once and for all. Thus, the breakout may just be getting started here, which jives with the bull thesis for the market of some major stocks only now breaking multi-year ranges.