Wednesday, June 3, 2009

06/03/09 Market Recap

Finally got some consolidation after 4 straight days up, all sectors were down with energy and materials leading the way, although volume was lower across all indexes. This drop was in part caused by the data on the services industry and factory orders which came in below forecasts. Today we saw how with rising expectations it becomes harder to beat estimates, in March the bar was set very low but now it has become tougher.

The S&P closed above 930 which was the previous range it was stuck in, we also saw the 200 dma act as support. We are still in an up channel and above support levels so my stance is still bullish, although I took a big hit today. 950 is a key level for the bulls to take over, there is also the possibility for more down side to the bottom of the channel. I won't turn bearish until we start to see some lower highs and lower lows as well as a break of important support levels (930/914/880).

Nasdaq is showing more strength than the S&P, trend of higher highs and higher lows remains and we are above support levels and 20/50/200 dma. One note of caution is the 1485 level which is the 38.2% retracement that has acted as resistance so far, the bulls need to close above that level(which would correspond to approx. 950 in the S&P)

High risk long, DRYS:
















Breakout triggered, PEET:
















Cup with handle formation, TYL:
















Potential long, MV:
















Short candidate(50% retracement), TMK

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