Above or Below the Wrist, Clarice?

A ferocious morning bounce off the first test by price of the 50-day simple moving average for the S&P 500 Index since last November is putting bears back on the defensive. Simply put, this market has been unable to stay down for very long at all. Thus, there is a premium placed on being open-minded and nimble enough to adjust with the tape. 

Some major leaders like NFLX PCLN TSLA are in play for potential new breakouts higher, while the VIX struggles at the 13 level. 

To be sure, a poor close with the IWM back under $134 today would give bears some hope that the morning bounce was simply a mirage. But we cannot count on that, since a good amount of stocks are green. 

One continued area of interest for us is the medical device space. Note how many of these charts are much stronger than the likes of other healthcare plays like HZNP MNK VRX. 

Boston Scientific, below on the daily timeframe, is a prime example of the medical device strength. Note the orderly channel pullback with buyers attempting to break the leader up and away today. If we see a strong close, not only will it really hurt for bears, but it would be hard not to like BSX on the long side.