Another low volume day, in a chart pattern that is looking less and less like the start of a new bull market, but yet another dead cat bounce. There is virtually nothing driving the market right now, it is pbasically waiting for earnings season to start, and the market is basically telling us nothing about what it expects. We are now above the dreaded bear market pivot at 1040, but still below the 200dma, and probably due for another test of the descending trend line, but with this kind of volume, that could take a while.
The Nasdaq tested it's 200dema as well, has filled the gap from last month, and has basically nothing technically to push it higher. If you have been following the news on AAPL, and the engineering gaff they made with the latest iPhone, that isn't going to help.
The Russell 2000 never got off the mat today, and was the first to test, and get rejected by, the 200dema. That is not a good omen for the rest of the market.
The correction began with a rise in the dollar (or more specifically, the collapse of the euro), but the correlation is no longer there. The dollar is, however, in an orderly pullback, which looks an awfully lot like a pullback before another move up.
The market really doesn't look like it has bottomed. Another pullback with a retest of the previous low will go a long way toward restoring confidence in the market, and another follow through day in August will have better odds at succeeding. But we will have to wait and see if that happens.
I will have the new highs update shortly.