The bulls continued their run to higher highs as they registered their fifth-straight week of gains. On the other hand, even with the broader market now in positive territory for the year, the talking heads continue to doubt the rally instead of embracing it.
The Federal Reserve left interest rates unchanged on Wednesday, and Fed officials made sure they pleased Wall Street with their rhetoric. The news pushed the market to fresh session highs, as the bullish clues that were left ahead of the announcement played out as planned. More importantly, the VIX closed below 15 for the first time this year.
The Stop Limit at $2.25 triggered on Rigel Pharmaceuticals (RIGL).
The Stop Limit at $12.75 triggered on Rambus (RMBS).
The bulls pulled a rabbit out of their hat following Friday’s rally past resistance, as the bears were stifled for the fourth-straight week. The surge off of the mid-February lows continues to play out according to plan, with the run to new highs coming on fresh legs.
The bulls held positive territory into Wednesday’s close, with tech leading the way higher. However, the push towards resistance stalled as Wall Street waited for news on interest rates from overseas.
The bulls wrapped up a solid week on Friday as March got off to a strong start, and the major indices have either cleared or are challenging key psychological levels that could lead to further strength. The major moving averages are also being challenged, and volatility has dropped to its lowest levels of the year. The “V-shaped” rally has also cut 2016’s losses in half, which has Wall Street wondering if the rebound has come too far too fast.
Wednesday’s action was choppy throughout most of the session before a late day push into positive territory. The Financial stocks were strong with the small-caps producing even stronger results. Volatility also fell below a key level of support and confirmed higher highs are still be in play.
The market finished mixed on Friday, but the bulls got their second-straight weekly win despite the choppy action. The current rally has also helped to erase much of February’s losses, although the bears still have a little piece of the pie, as tech is still in the red.
The bulls showed their resiliency on Wednesday following the opening onslaught by the bears. The late-day recovery was a beautiful sight, but upper resistance remains in the picture. Volatility also cooled into the closing bell, but it is still in the danger zone.
The market started the holiday-shortened week on a good note last Tuesday, as the bulls recovered major resistance following the three-day weekend. The Dow Jones Industrial Average and S&P 500 also enjoyed their first three-session win streaks of the year following the rally that continued into Wednesday’s close.
