S&P500 Holds 50 Day

The S&P once again tested its 50 day moving average and appears to be attracting buyers  right at support which coincides exactly with this average. As I pointed out yesterday, the small cap stocks have been much stronger than the S&P and if you look at a chart of IWM, you will see that the small caps are not even close to testing their 50 day moving average which is a sign of strength.

I think the next few days will determine the direction of the next move as the market appears to be consolidating. As I commented on yesterday, the NASDAQ and the small caps are making higher lows which in my opinion is a sign that we are likely to see a rally rather than a decline.  As you know we are dealing with uncertainties so anything can happen. Lets see what the rest of the week has in store for us.