Monday, June 15, 2009

06/15/09 Market Recap

Strong dollar pushed commodities prices sharply lower, declining issues outnumbered advancers by more than a 5-to-1 ratio on the NYSE, where volume was light. All sectors were down today representing broad particiption, technology was the one sector that held up relatively well down only -0.54%.

S&P finally broke out of the channel we have been trading in for the last 60 days, closed in last months range and we are seeing a pattern of lower highs and lower lows. All this adds up to a bearish view of the market, which was non-existed before today's big drop. To maintain this bearish view it is important not to make a move up and close back into the channel. 930 should provide resistance while the next level of support is at 914/880. I have moved over to the bearish side and will remain bearish as long as the above mentioned patterns continue.

Nasdaq is also looking bearish as we broke into new lows below our previous trendline and the 1485 38.2% fibonacci level. Next level of support is at 1435, the bears need to see a break/close of this level which would bring us back into last months range.

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