The first day of trading started off nicely…then sold off…then rebounded. The result was a “small range day” – in other words, not much difference between open and close. Coming after a sharp move up or down, days like this often mark a turning point in momentum. That makes the odds of the market rebounding next week fairly good.
I keep reading where housing is improving, but I’m unsure. I’ll believe more in any rebound once Toll Brothers (NYSE:TOL) breaks to new highs.
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Under Armour (NYSE:UA) has gone up nearly 2000% since early 2009. That’s one heck of a move. I still like the company but would be on the sidelines until it breaks out of that sideways pattern.
Back next week to see how that “first 5 days of the year” indicator is working out.