AT40 = 55.8% of stocks are trading above their respective 40-day moving averages (DMAs)
AT200 = 46.3% of stocks are trading above their respective 200DMAs
VIX = 16.6
Short-term Trading Call: neutral

Commentary

The buyers went right back to work after bears engulfed the end of trading last week.The indices crept higher on the day toward critical resistance at their 50-day moving averages (DMAs). Even more important to me was the performance of my favorite technical indicator, AT40 (T2108) aka the percentage of stocks trading above their respective 40DMAs. For the first time in 23 trading days, AT40 closed above 50%. AT40 is at its highest close since January 30th which means that once again it is on the edge of overcoming all the angst of the big sell-off that led to persistent oversold conditions in February. This breakout is unseen to most market participants, but I am sitting up straight and taking notes…

AT40 (T2108) broke out…and continued its pattern of higher highs and higher lows.

The Nasdaq is facing its own test of 50DMA resistance.

The PowerShares QQQ ETF (QQQ) is also trying to end the churn with an upward push toward 50DMA resistance.