Thursday, March 12, 2009

Stock Market - Is The Bull Showing His Face?

The stock market put in a nice day to the upside with financials leading the way higher. The BKX (banks index) was up was up 11.23%. The S&P was up over 4% and is now back above the 741 level.

If you look at the above chart of the NASDAQ Composite, it appears that last week's move below support was a false breakdown. Looks to me like many traders were caught short and are now covering, at least the weak shorts seem to be covering.

If the stock market can close strong tomorrow, there's a good chance that many of the major indices will have formed bullish engulfment patterns on the weekly chart at a time of very high bearish sentiment. This is bullish in my opinion and may indicate that the bull is beginning to show his face. Now wouldn't that be nice!


Anonymous said...

interesting.but can u comment on my usd question please.thanks

Kevin said...

Not sure why your charts are different... Sorry

dacian said...

Hi Kevin,

Do you have a target for this rally?


Kevin said...

Hi Dacian,

I'd look for a test of the 50 day moving average and then if that's taken we can expect a test of the 200 day. Let's see how the market closes today.

dacian said...

This was quite nice for the ST bull case; market held well at 741 and moved up. What's your take Kevin after today market action? thx

dacian said...

oh and btw, do you expect some profit taking on Monday?


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