Bullish sentiment abounds despite macro data that would dictate otherwise.
Yesterday's recovery after a weak open and a bad ISM report is a good indication of what investors are thinking. Small caps are where the action is. While $SPY made a doji and closed below the 8 ema, the pullback is shallow and showed good recovery throughout the day and is bouncing off support. The $RUT showed significant strength, closing up 1.24%. This gives me confidence to continue to look for bullish charts that will remain strong and go higher.
I missed re-entries in both $PWER and $WFR yesterday but will be stalking for a spot. My underperformers, $NKE & $MPC, both larger cap stocks, will need to show some strength today or get kicked to the curb. There are plenty of stocks out there that are breaking out and running further.
I will need to see strong distribution following this morning's lower open to change my tone and will be otherwise looking to "buy the dip". Check out $SPY and $IWM charts below. Note that $IWM pulled back last Thursday in an up-trend, then pushed higher the following two days, closing above all MA's yesterday.