Tuesday, June 08, 2010

Support In The Stock Market Continues To Hold

Above is a daily chart of the S&P500 and as you can see the market continues to find support at these levels. Notice the long tails that we are seeing on the candlesticks which means buyers are snapping up shares at these lower levels. This is the 4th time SPY traded below 105.50 and ended the day closing on its high.

Although the above price action is encouraging for the bulls, there's still not enough bullish evidence to issue a buy signal . I am waiting patiently for some kind of technical buy signal , until then I will remain on the sidelines.  One thing to keep in mind is that a close below 104 would strongly tilt the odds in favor of the bears.

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