Stocks Post Their First Solid Up Close In Weeks
The stock market today posted its first solid up close in weeks. Looking at the above daily chart of SPY, you can see the big support level that exists between 104 to 105.50 which the market appears to be bouncing off of.
Earlier today I did a mid-day update because I thought the S&P was on its way to completing a bullish engulfment candle but SPY needed to close above 109.38 (yesterday's open) which it did not do. Overall I am still bearish on stocks and am waiting patiently for a bounce in the market to short. I liquidated my short positions yesterday due to the strength in the Euro, the support zone we are testing and several other technical factors. Volume was good today and maybe this might be the beginning of a small rally. Let's see what happens.
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2 comments:
You are right on when you predict S&P is going to fall. Until S&P breaks the 2/2010 low, the trend is still up. There is record amount of foreclosure and more layoff. The fundamental is not better. I am long this market expecting a bounce. I think the pattern is similar to 2004. There is likely a year-end rally if the market continues to fall in the summer time. Institutions have to put their money somewhere given the zero interest rate. The ample of money supply will provide market support until the inevitable.
Thanks Ben
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