Market Bounces Off "Yellen Low"

On Thursday, the market retested the "Yellen sell off low" from Wednesday, and price held above it. This established a support level for the market to bounce. Small caps and mid caps under performed. The S&P and Dow advanced more than the Nasdaq, closing up +108 points (+0.67%) and +11 points (+0.60%), respectively. The Naz gained +11 points (+0.27%).

Volume was higher on the S&P, but lower on the Nasdaq. NYSE decliners and advancers were closely matched, with a slight edge to the decliners. However, up volume bested down volume by nearly 2 to 1. Overall, today's market action simply regained Wednesday's losses, but it did not advance the market to new highs, nor did it provide a strong statement by either the bulls or bears.

The up day left all three indices (Nasdaq, S&P, and Dow) above their 10 SMAs. While not a strong bullish statement today, getting above the 10 SMA allows price a higher support level from which to attempt to move to the upside. 

Initial jobless claims increased slightly. Existing home sales dropped. 

Friday is Quadruple Witching, a day which usually is higher in volume and volatility.