In a reversal from yesterday, the markets opened higher and never looked back with the S&P; 500 closing above 1,400 for the first time since January.
Financials provided leadership, as energy was knocked lower by a drop in oil prices. The dollar rose and the Commodity Index was pushed to its lowest level in 4 weeks. Gold dropped as well and has now come off its high in March by some 18%.
Our Trend Tracking Indexes (TTIs) improved and are hugging their long-term trend lines as follows:
Domestic TTI: +1.69%
International TTI: -1.69%
Today’s strong up move in the market pushed our domestic TTI now above the upper range of the neutral zone (+1.50%). If this level holds for a couple of trading days, that will then constitute a new Buy signal. Stay tuned as tomorrows payroll report will certainly have an effect on market direction.
If a Buy signal materializes over the next few days, I will provide more details in a special blog post.