You have to admit. Today was a good start for a market poised to melt up.
I don't know if you caught my last Mr. Market Twitter. According to Pete Najarian, fully one-third of today's share volume on the Big Board apparently changed hands during the last fifteen minutes of trading.
Let's have a look at this...
We could not have asked for a more positive development.
First, we had a gap higher open continuing yesterday afternoon's turnaround ... with buying lifting the NYSE Composite steadily throughout the morning in a well-behaved, sustainable manner (as evidenced by RSI, which revealed a healthy balance between buying and selling strength). Likewise, as the morning's top was set at around 11:30 a.m. RSI registered a new high for the day (indicating a solid buying interest remained).
Then followed a modest consolidation lasting most of the afternoon. In the interim a healthy balance between buying and selling strength once again was demonstrated by RSI performance.
Finally came the last hour.
As you can see, RSI did not perform in quite the same balanced manner as just noted. No worry. This comes with the territory.
To learn the last hour's strength was accompanied by a surge in volume ... this while RSI set a new high for the day ... well, that's just the icing on the cake. It says that, soon enough the market will be racing higher still.
Now, don't expect this right away. The last day of '08 might be a bust ... or maybe indecisive. But come Friday it's a New Year. And it's looking like Mr. Market can hardly wait...
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