Stocks roared ahead Monday in the best day in months as Friday’s key reversal – short term or otherwise – led to continued momentum. The S&P 500 gained 2.0% and the NASDAQ 2.2%. Everyone’s most watched stocks, Apple (AAPL), surged 7.2% off incredibly oversold levels. The main theme of the day was continued positive thoughts about the fiscal cliff along with some decent housing data. But more likely the key takeaway was this was a technical bounce that was overdue.
The S&P 500 bounced Friday off the 61.8% retracement of the entire June-September rally; now we have to see how far it can rebound.
The NASDAQ is following suit of course, with Apple leading the way.
This quick move in essentially a day and a half as moved this oscillator from “extremely oversold” to “neutral” – just that quick.
Lowe’s (LOW) followed in the steps of Home Depot (HD) in reporting a solid quarter as the market for refurbishing houses (as well as new construction) continues to improve.
Bespoke has a look at key ETF performances during this 2 day bounce, half way through the quarter, and year to date.