Major averages rose on lower volume. The major averages are in no man's land with the NASDAQ Composite close to its 200-day moving average. If the prior correction in February repeats where the put-call ratio spiked on February 4 resulting in a market floor on February 5, then the put-call ratio which also spiked on Friday April 11 would imply a market floor has either been established or is about to be reached. That said, spiking put-call ratios are no guarantee the market has reached a low as it is sometimes a way for institutions to hedge. Further, price/volume shows no sign of the downtrend coming to an end as high volume distribution days and low volume accumulation days seem to be the order of the day. But again, QE is the wildcard and the market could get a lift with dovish Federal Reserve members speaking today.
The bottom line for investors is that there is virtually nothing set up in a buyable position, hence nothing to act on at the present time even if the market does continue its bounce. That will likely take time, and until and unless we begin to see potential leading stocks setting up properly, there is nothing to buy.
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