Tuesday, June 9, 2009

06/09/09 Market Recap

The stock market ended a quiet day slightly higher today, as investors pumped money into commodity and technology stocks, encouraged by higher prices for oil and other commodities, as well as an upbeat forecast from Texas Instruments. Advancing issues outnumbered decliners by about a 3-to-2 ratio on the NYSE, where volume was still moderately light.

Again not much has changed as the market barely moved today, the S&P is still stuck in its 925-950 range, in an upchannel, and above 20/50/200 dma. We are seeing some higher lows and lower highs that will eventually get a pop one way or another. Last month we saw the same traingle formation which ended with a massive 40 handle up move in the S&P. For me to start to turn bearish we will have to see a lower low and a close below 930, while the bulls need a close above 950. If the current pattern follows we should see a move down tomorrow to the 930 level.

Nasdaq looking much more bullish as we proceeded to make new highs today above the 1485 fibonacci level(38.2%) and we are also seeing a series of higher highs and higher lows. I remain fully bullish.

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