The market rallied hard today from deeply oversold levels, but momentum stalled in the last 30 minutes of trading. As I suggested yesterday, the close offers some clues about whether to take advantage of higher prices to establish new short positions, and whether to step out of the way and allow for the possibility of a multi-day bear market rally, or possibly even nibble at some bullish areas of the markets that remain unbroken in anticipation to an end of the bearishness. Not everything goes down in a bear market, but most ETFs trade in lockstep with the broad indexes. The Market Forecast (red) momentum line and (blue) near term line can act as a tell for how stocks are likely to follow through.
Let’s start with the strong areas of the market. I filtered the cheat sheet on the link above for bullish long-term trends and positive money flow. The cheat sheets delivered only two liquid ETFs.
Link to today's cheat sheet blog is here