Getting Serious With Cirrus
That was some rally for the market Monday, but it's no reason to get overly excited -- it was only the first day of a rally attempt for the major averages. If the May 18 lows hold, the rally will stay intact. It's even possible that the market could follow through with conviction in the coming days and confirm a new uptrend. But that story still needs more time to play out. It's entirely possible because new market uptrends often begin when they're least expected.
A lot of former leaders made impressive moves Monday, including Apple (AAPL), Priceline (PCLN) and Intuitive Surgical (ISRG) but volume was mostly soft. All three still have a lot more work to do to prove they can resume leadership roles. I'm not convinced yet. Fairly blatant signs of institutional selling in all three stocks have resulted in technical damage. Renewed signs of institutional buying would improve the charts of each, but it wasn't clear to me that institutions were buying on Monday. Most of the moves I saw Monday looked like dead-cat bounces from oversold conditions....344 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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