Wednesday, July 15, 2009

07/15/09 Market Recap

The stock market surged for the second time in three days, Advancing issues easily outnumbered decliners by more than a 7-to-1 ratio on the NYSE, where volume was much heavier than it was yesterday (a very good sign for the bulls). Strong earnings and an upbeat forecast from Intel (INTC), combined with a more favorable take on the economy from the Federal Reserve, pulled investors back into the stock market in a big way.

S&P move above 930 has broken the pattern of lower highs and the previous h&s formation is no longer valid. We broke out of huge channel down that acted as a bull flag, and for the first time in over a month we closed above 930. Right now my stance on the market is bullish as we have broken out of a bullish flag, seeing HH's and HL's, and trading above all major MA's. But i'm only partially exposed and will wait for a pull back to add some long positions.

Nasdaq is looking bullish as well as we broke the pattern of lower highs. Nasdaq is currently in a range of 1400-1515 for the last 8 weeks, for the bullish scenario to continue we need to see new highs made. But unlike the S&P we are at resistance as we have approached a long term trendline.

We'll probably see a pull back on the indexes but I will be using that as a buying oppurtunity, the bulls are in full control on the market right now.

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