Market Is Strong! Status Changed: Market In Confirmed Rally

The major averages scored a follow-through day (FTD) on Monday 11.09.2009 after the G-20 agreed to maintain its massive economic stimulus package as the global economy continues to recover. This sent the US dollar tumbling and a slew of stocks and commodities higher. Volume, a critical component of institutional demand, was higher than Friday’s levels as the major averages rallied which was helped produce a sound FTD day and confirm this week long rally attempt. In terms of new leadership, it was encouraging to see new 52-week highs outnumber new 52-week lows on the NYSE and Nasdaq exchange.

Make no mistake about it- this market is strong! Every pullback since the March lows has not exceeded -8% and the bulls have promptly showed up to quell the bearish pressure. The latest correction began on October 28, 2009 and ended today on November 9, 2009 when this rally-attempt was confirmed. To avoid any confusion, the official status of the market changed from “rally attempt” to “confirmed rally.” Now that the market is back in a confirmed rally, growth investors have a green light for accumulating stocks when they trigger fresh technical buy signals and break out of sound bases.

The Dow Jones Industrial Average 11.9.09
The Dow Jones Industrial Average 11.9.09

Chart Courtesy of Stockcharts.com

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