The Qs followed through with the upside move from Friday. Although the RSI is now flashing a moderate overbought signal and the MACD looks ready to reverse, the 3/7 DSMA is wide open and suggests we may see the old high revisited before a meaningful reversal. Volume was tepid for most of the day, finally picking up for the last 2 hours as the NYAD went upslope 45 degrees. Strangely, TICK readings were not reflective of the early strength in the markets, modulating between the PP and S1 pivots until the last 2 hours. Short covering? Hard to tell at this point, but the next 2 days should tell the tale. The Qs have demonstrated greater strength than the DOW, IWM or SPY for the past 4 days and appear poised to make new highs, notwithstanding negative fallout from this week's news.
The VIX went downslope for most of the day after an opening pop, and only showed a reversal during the last 1/2 hour. The VIX continues its slide below the 10 DSMA as the MACD rides the zero line. As with Friday, few clues here as to the next move.