Watching for clues.

Nice momentum than pullback and sideways consolidation. Today we got a break-out on high volume.

Notice!

IBD reported that follow-through days in June have had a poor record of success. According to IBD, in the past 10 years, June has delivered four follow-through days — 2001, 2006 and two in 2010. Every one of them failed. On May 31, the NASDAQ Composite flashed a follow-through day, but that too failed.

If you decide to trade now, keep positions small and stops tight until we get confirmation that the market has indeed bottomed.

I was looking for a positive follow-through day and this was it.

Today we had a gap higher at the open and went back up to prior swing highs and broke and closed above them. We settled out at the 20 day moving average and the consistent series of lower highs have finally been broken. In sum this is indicative of noteworthy shift in the balance of power. Weather that shift in power is going to stick will be tested tomorrow afternoon with the Fed announcement.

Who are the major holders of U.S. equities?