Tuesday, May 26, 2009

05/26/09 Market Recap

The market surged today after consumer sentiment rose in May to the highest level since September. Breadth was extremely bullish all day and until the last hour we didn't see any TICKS below -800, and all sectors were up big representing wide spread participation. We once again bounced off 880 in the SPX and shot up above the 20 dma, we are seeing a lower high but until we close below 880 I will remain bullish, there is no sense in fighting the trend. It will be key to see if the bulls can break 925/930 area or if we retrace back down to 880. There is still more important economic reports coming up and market direction will be dictated by them.

Taking a closer look at the SPX we have support levels around 896 and 880 which the bears need to see broken, the bulls need to take out 915 which was a the previous h&s pattern.

IHS, current long:

BEE, lottery long:

Potential long, VRX (cup and handle):

Low risk short, AAP:

SRS, near all time lows:

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