Friday, July 16, 2010

Resistance Holds As Stocks Sell Off


If you read my previous post from the other day, you would know that the stock market was at key resistance while also being in an overbought condition. When we have this kind of situation, the market usually (but not always) sells off and that is exactly what we saw happen today.

Stock indices were down sharply today with  financial stocks getting hit the hardest. Volume increased today which is an indication of aggressive selling. The most obvious downside target would be a re-test of this month's low.

2 comments:

Anonymous said...

Thanks for posting your analysis.

Based on the COT data I think the 50% level will be bought and we'll run up into August.

Kevin

Anonymous said...

Kevin - the 1050 level held and the market has risen 7% since my comment above.

Kevin

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