There are only 118 of the S&P 500 stocks above their 50 dma, and only 267 of them above their 200 dma. The last three times that happened were near the bottoms of the corrections of Apr 2005, Oct 2005, and Jun 2006.

The S&P 500 index has a very low RSI and a high VIX in relation to its ATR, and is looking attractive to me, especially with the late afternoon lift off of the lows. EZ trend is still “up” but it takes a lot to make that model switch. Speaking of models, the 20-day regression model is now flashing an “all clear” potential signal in the 8th decile (71 out of 100), so there it is!

I have no idea what the new industry leadership will be, yet, so I will start nibbling on the SSO or the QLD to build my position. Last year, I didn’t get the initial leadership right and dragged behind the market on the slingshot. I will NOT be nibbling at buying until (at least) after I see the reaction to the GDP report tomorrow. I don’t think that report means anything, but the people that move the markets do, so I’ll respect the possibility of a “data bomb.”

I have also gone from liking stop losses (again) to hating them (again), as several of the foreign index ETFs stopped out. Wash rule be damned, I will possibly buy some of them back tomorrow – again, barring no “data bomb” in the 2Q GDP. I still have a few positions that didn’t stop out, check the watchlist, current positions are always up front.