Wednesday, June 10, 2009

06/10/09 Market Recap

The stock market fell moderately today, after the government sold $19 billion in 10-year Treasury notes in a relatively weak auction. There were plenty of bidders, but the government had to lure them with a higher yield than the market anticipated. Declining issues outnumbered advancers by about a 3-to-2 ratio on the NYSE, where volume was a bit heavier than it was yesterday, but still relatively light.

Once again not much has changed, the S&P bounced off the bottom trend line of the current triangle we are trading in and failed to make a new low and did not close in last months range. In addition we are still above the 20/50/200 dma. We continued to see the pattern of lower highs and higher lows, the longer this goes on the bigger the breakout will be. I remain bullish until we see new lows made and a close in last months close.

Nasdas remains fully bullish as we continue to see higher highs and higher lows as well as a close above 1485(38.2 fibonacci level). I will turn bearish once this pattern changes and we get a close below 1485 . No need to try and pick the top.

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