Major averages had an upside reversal day to close higher on mixed volume after a strong employment report. The report at first pushed markets lower as it moved the Fed closer to hiking rates, but as we stated in our PMP on 4/1/16, Fed Chair Yellen recently acknowledged that global growth is an important factor with respect to any rate hikes as a premature hike could further derail the already fragile global economy. So despite a strong employment report, Yellen's dovish stance continues to have a bullish impact as it ultimately postpones any rate hikes as long as global growth remains stagnant.
Website hosting company GoDaddy (GDDY) had an upside reversal pocket pivot breakout off its handle. GDDY is a leader in its space. Institutional sponsorship has grown in every quarter since the company went public 3 quarters ago, group rank 84..
Advanced surgical system company Intuitive Surgical (ISRG) had an upside reversal pocket pivot, closing at new highs. Pretax margin 40.4%, group rank 58.
Upside reversals on higher volume are strong patterns, thus often directly precede higher prices. That said, this bullish action needs to be weighed against buying stocks on weakness closer to their respective moving averages since such stocks may not trade all the way down to such levels.
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