Sunday, July 26, 2009

Weekend Review (07/20-24/09)

The stock market rose slightly on Friday, extending a two-week streak that has added 11% to the stock market's major indices. Advancing issues outnumbered decliners by about a 2-to-1 ratio on the NYSE, where volume was very light.

S&P has broken a it's long term trendline and as long as we continue to see higher highs and higher lows as well as above the 50/100/200 ma. Friday's low of 965 will be a key level to hold for the bulls. If we do see move down I will be using it as a buying opportunity, we have support levels at 950 and 930 level.

Nasdaq, which has been leading the market, is coming up to resistance at 50% retracement at 1530 as well as previous price support and a long term trendline. This doesn't mean to go short but I will take back my long exposure and watch how the market acts around that level and if there is signs of weekness and we see pattern of LH and LL then I will short the market.

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