Another Wacky Day in the Stock Market

NEW YORK (TheStreet) -- The stock indexes on Monday all closed higher on the day with the Russell 2000 leading the way, up 1.04% to close at 1114.43.

The Russell 2000 was followed by the Nasdaq, up 0.86% to close at 4125.81. The DJIA closed up 20.55 points at 16511.86 and the S&P 500 finished higher by 7.22 points at 1885.08.

It was no surprise the Russell 2000 and the Nasdaq finished stronger on the day since both of those indexes had been oversold according to my internal algorithm indicators. Both indexes, however, are still well into Trend Bearish territory.

What was interesting on this trading day was that the momentum stocks continued to move higher off of their move higher last week.

Apple (AAPL) gained 7 points. This was the fifth consecutive Monday that AAPL has finished higher. Netflix (NFLX)gained 14.62 points and Facebook (FB) was higher by $1.19.

The most fascinating fact of the day was the S&P 500 Trust Series ETF (SPY) had its second-lowest volume day of 2014, barely eclipsing the Jan. 22, 2014 volume by 800 million shares.

What does this all mean? Please do not get to excited by the movement on Monday in the indexes or the momentum stocks. Except for AAPL, the stocks that were mentioned are all in Trend Bearish formation, a three-month or longer time frame. Thus, an upward bias with a bearish trend.

This entire trading week may prove to be a very slow. With the Memorial Day weekend quickly approaching, the markets can be whipped around easily on low volume. So, buy the dips and sell the rips. This is a traders market in 2014 and overextending your stay may prove costly.

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