08Aug1:53 pmEST
I've Got My Toes in the Water...
Bulls are holding the line today, which folds neatly into the baby step they took yesterday. As I write this, the small caps in IWM are maintaining their move back over their 200-day moving average while tech stocks in QQQ are doing the same for their 50-day moving average.
As long as there is no complete rollover into the bell, it appears as though bulls are making more tangible progress and that the selling we saw dating back to last week may have served most of its purpose in terms of keeping longs honest and instilling some genuine fear back in the market.
Having said that, we never know until after the fact whether it was "the" bottom or simply "A" bottom for a respite from the selling, which means taking some tester positions and seeing how we are treated is usually the most sensible strategy. Bear in mind, we have notable earnings tonight with ATVI DBX FNKO TTD UBER, among others. And that can sway the futures, as well as any other trade war/currency headlines overnight.
But progress is progress. Bulls deserve some credit for the resilience in quite a few names we have been tracking. Therefore, some tester positions seems appropriate after we largely avoided the swoon earlier this week.