06/11/09 Market Recap

The stock market finished modestly higher today, as investors welcomed a drop in jobless claims, growth in retail sales and better-than-expected demand at a government debt auction. But traders remained concerned by how far the market has come in its three-month rally. Advancing issues outnumbered decliners by about a 3-to-2 ratio on the NYSE.

We got the breakout we were looking for in the S&P above 950, but with the sell off to end the day we came back down and closed back in our 925-950 range. I remain bullish since we are seeing higher highs and higher lows, I won't turn bearish until we see new lows get made with a close below 930(back into last months range). We are also still above the 20/50/200 dma, the bulls need a close above 950.
Bullish pattern of higher highs and higher lows remains in Nasdaq, as long as we see this pattern there is no reason to go short and try to pick the top. If we do get a move down I will be looking for support at the trendline as well as the 1485 (38.2% fib retracement) level.