Thursday, May 28, 2009

05/28/09 Marker Recap

The energy sector led Thursday's gains as crude oil rose above $65 a barrel to a six-month high, advancing issues outnumbered decliners by about a 2-to-1 on the NYSE. The charts for the major indices are showing a big multi-month basing pattern, it looks as though a breakout (up or down) is coming very soon. The longer we trade flat and in this tight range, the bigger the move will be.

We are now in a revised upchannel in the SPX and currently above support levels at 896 and 880, we seem to be compressing into a wedge formation as we are seeing lower highs and higher lows, I will remain a bull until we see a breach of this channel and more importantly a close below 880. Key levels for the bulls is 914 and 886/880 for the bears.

NDX looking more bullish as we are above critical support levels and seeing higher highs and higher lows. But like the SPX we are still stuck in a range market.

Long candidate, CXG:

Current long, TS:

Current long, VFC:

Short candidate, EQIX:

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