NEW YORK (TheStreet) -- The stock market continued its winning ways Thursday with the DJIA gaining 61.78 points to close at 16713.58 and the S&P 500 closing up 8.46 to finish at 1955.18. The Nasdaq was higher by 18.88 to close at 4453 and the Russell 2000 closed up 1.56 to finish at 1143.34.
Once again, call me skeptical of this advance for the week.
The S&P 500 Trust Series ETF (SPY - Get Report) volume came in at just over 57 million shares. That is one of the lowest volume days of 2014. If I am the only person who writes and talks about the volume, so be it. I am not part of old Wall Street. This volume matters.
The only players in the market are the hedge funds. When they decide to sell in unison, we know what happens, having experienced that type of selling last week.
So keep your emotions in check. This continues to be a relief rally from a deep oversold condition last week.
According to my process, the Russell 2000 will now be deep into overbought territory on an up open Friday. This is not the time to be chasing stocks higher.
If you would like to learn more about my process, we are having a free chat and live screen show on Friday at www.strategicstocktrade.com. All are welcome to attend.
On Thursday, I sold the last remaining shares of Mylan (MYL - Get Report) for a nice gain. I also added to my Direxion Small Cap Bear 3x (TZA - Get Report) based on the oversold signal that is reaching extreme levels.
At the time of publication, the author was long TZA, although positions may change at any time.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.