Today’s action was very positive, in my opinion. A very large gap from April 20 was partially filled, and the market opened down but reversed to close higher on good volume. As mentioned in last night’s post, the 50 day average held as support.
On the face of it, the market appears to be more normal, and seems to be trading more normally, than it has in many months. Keep in mind that a normal market does not trade in just one direction, day after day after day, for months at a time.
Sure, the market may be undergoing a topping process, but at least it is doing so in an orderly fashion. In my opinion, a topping market that is trading normally is better than an abnormally trading up-trending market.