I’ve recently made the case that the market’s rebound later in the 1st quarter was substantive and could prove to be a launching pad to higher levels in 2022. 

It was striking how similar the retreats were among the major market indices yesterday. My take on that is that it had more to do with end-of-the-quarter activities than news items. 

The final day of a quarter that unleashed significant volatility amid a myriad of challenges on a number of fronts, including geopolitical, especially the Russia-Ukraine war. 

One of the headline technical features in yesterday’s trading was the DJIA breaking out above its 200-day moving average at the 35,000 level. 

From aerospace to utilities and many categories in between, the underlying market appears to be building a sturdy foundation that could serve as a launching pad for higher levels over the short run. 

Technical indicators are aligning quite nicely indicating that we could see higher levels over the short term and I continue to be quite bullish about the market’s long-term prospects as well. 

Volatility is simmering down; the VIX is trading near the 23 level, this after breaching near-term support at 27. This lower volatility is a welcome sign. 

Four consecutive rally days puts into perspective the pivot days that we had in January, February and again this month… 

Yesterday’s closing levels for the major market indices may have defined their upper boundaries for what could be a short-term trading range. 

Yesterday’s market action may have proven to be something more than just a technical baby step toward recovery: the resiliency in the session was striking, impressive and the first back-to-back significant gains this year.