Wednesday, May 27, 2009

05/27/09 Market Recap

The stock market fell, after a jump in government bond yields fanned worries that higher interest rates will sap strength from the economy before it has a chance to recover. We sold off hard into the close blowing past resistance in the 896 area of the SPX, the key level remains to be 880. Until we get a break(and close) below I will still be bullish on the market, we would just be building a base to blast higher off of. The 930-880 range can only last for so long, whichever way it breaks will confirm market direction for me. For that reason I am only moderately tilted bullish.

Taking a closer look at the SPX we are seeing lower highs but no significant signs of any downside. Bulls need to overcome 896 and 915.

NDX looking much more bullish as it failed to make a lower high, trading above support levels at 1383 and 1358.

My Oil(via USO), DBA, and DBC are doing well so I decided to add UNG to my commodities list:
















Long candidate, STLD:
















Short candidate, URS:

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