Quite a day traders dream market today with the volatility.
In the end, the bulls won the battle, but the war is far from over.
The Trading Model calls for higher prices yet again for Thursday and should there be weakness in the first hour of trading, it is also saying short term traders should buy the dip.
Not really much has changed since the analysis of yesterday.
I continue to look for short term and intermediate term higher stock prices.
The only real change from yesterday is the indication that Friday should see a corrective move on Friday.
The reason I bring this up is the effect this call has on Thursday. In order for this Friday model call to remain strong, it will require a strong to very strong Thursday. So, should you see a 0.75% or higher move to the upside tomorrow use this as an opportunity to take short term profits.
The Nasdaq has been pretty much following the line we thought it would as it shows more strength than the S&P 500. Look for this trend to continue as the battered tech stocks come back to life.
One more quick note is that the Airlines Index is starting to get bullish again, so aggressive short term traders can look for some opportunity here. We took a very nice profit out of it about 3 weeks ago and should things progress as we see them, then this next move up in XAL could be even better. This is a risk play however and thus is intended for aggressive risk adverse traders only.