The NASDAQ Composite closed at new multi-year high while the S&P 500 made a new all-time high, pushing IBD's Big Picture back into "Market in Uptrend". Meanwhile, the Market Direction Model has been on a buy signal since April 24. Quantitative easing changes market dynamics which the model takes into account, but nevertheless makes for a highly challenging environment. Major averages were up on the day but on lower volume, and the number of distribution days is still alarmingly high. Actionable buy points remain relatively scarce.
The SPDR Gold Shares (GLD) and iShares Silver Trust (SLV) continued their rebounds on low volume as analysts call for the metals to reverse from here and resume their declines, although there is no evidence of that just yet. Physical demand for the metals remains very strong as physical premiums remain relatively high, particularly for silver. Apple (AAPL) continues to rebound as well, but as we mentioned in yesterday's pre-market report, the stock has completed three waves of selling within its overall downtrend which could set up the possibility of a more substantial rally. AAPL closed just below its 50-day moving average, which currently remains a key area of overhead resistance for the stock.
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