Bulls Are Not Homefree Yet – Update: Step 1 Accomplished

The chart below shows the relative price action of the SPDR Dow Jones Industrial Average ETF Trust (ticker: $DIA), S&P 500 SPDR’s (ticker: $SPY), Russell 200 iShares (ticker: $IWM) and PowerShares QQQ (ticker: $QQQ) since the downturn began May 1st. A quick comparison of the major equity indexes shows that while the the $IWM and $QQQ moved to new highs on Tuesday, the larger cap indexes $SPY and $DIA had yet to clear last Monday’s levels as of Tuesday’s close. The early Wednesday action off of the Greek vote held up with all indexes higher, and all four indexes printing a higher low and second higher high. The case for a reversal back higher is building, but not a lock yet. Even breaking 122 for the $DIA and 130 for the $SPY still leaves a lot of work to convince the trend has changed.

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