Market bouncing up and down like a cat on a hot tin roof

The Dow and the S&P 500 moved higher today breaking a three day losing steak. The Dow ended higher by .70% and the S&P 500 plus .84%. The modest gains can be attributed to a better than expected Index of Leading Economic report showing the strongest gains since 2004 and unemployment claims falling unexpectedly.

The chart below shows the percentage of NYSE stocks that are holding above their 50-day MA. Although the major stock averages are trading near their bear market rally highs, the percentage of stocks holding above their 50-day MA is declining. As of yesterday, the percentage was only 67.7%. This tells us that the main body of stocks are lagging behind the leading stock averages, not a good indication.



This confused market is bouncing up one day and down the next -- like the cat on a hot tin roof.August gold was up 1.60 and continues to creep higher. Creeping slowly higher is bull market action. Sharp and violent corrections are also typical of bull markets.