Market Rising but Stock Performance Mixed

Last week, the market began with 3 consecutive down days and ended the week with 2 consecutive up days. The result was a modest gain for the general market. The S&P 500 gained +0.37% on the week, while the Nasdaq Composite advanced +0.14%.The Dow performed best with a +0.65% gain, hitting an all time high of 16,000.

In the big picture, there is a mixed picture with stocks in general. Many quality stocks are making pullbacks to the daily 50 EMA (Ex: FB, EPAM, YNDX). In contrast, many quality stocks are also trending higher on strength. If the stocks making 50 EMA pullbacks turn up and signal new buy alerts, then this market can continue to climb, and a Christmas rally may be in order for December.

If however, the stocks at the 50 EMA represent an early sign of market weakness, with more stocks to follow suit, then the market will be more susceptible to a correction and/or top. The media seem focused on the Fed's quantitative easy policy. But supply and demand is what matters most. Right now, demand is winning the day. The 10 moving average of the advancers-decliners just turned positive, so the bias is for further upside until proven otherwise.