Monday, June 1, 2009

Market Recap 06/01/09

Today we saw better than expected readings on manufacturing, consumer spending, and construction spending. General Motors also filed for bankruptcy (the fourth-largest in U.S. history) and we saw falling Treasuries. All sectors were up but there was notable weakness in the financials.

S&P broke out of its previous range through 930 and shot up closing at 943 which was the next resistance level, also for the first time since May of 08 it is trading above the 200 dma. My bullish stance obviously remains but I wouldn't be surprised to see a bit of a pull back as we have been up a lot lately and are at a resistance level around 943, we'll have to see if we consolidate a little bit here or breakout again. The important thing for the bulls is to not fall back into the 930-880 range and be able to make a move above 950.

Nasdaq looking bullish above support at 1435, but we are almost at a 38.3% retracement level at 1485 which could act as resistance.

Potential long, TXI:

Short candidate, MCRS:

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