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This market is putting up a valiant fight on a daily basis to not dramatically sell off. Unlike the early 1980’s cheesy rock band, Mr. Market perhaps can fight this feeling to avoid rolling over, or even experiencing a sharp correction. Regardless, the fact that the market has gone this far for this long fighting the steep sell-off is bullish, in my view. Simply put, there is a strong underlying demand for equities.
Keep an eye on 1177-1178 on the S&P 500, which is proving to be key short-term support. As for resistance, that stubborn 200 period weekly moving average up at 1194 is really the main event in this battle. My two best performing holdings today are: $DDS (which I featured in a short squeeze post yesterday), and $RGS, so you may want to keep them on your radar. Also, for your action junkies, two high beta names looking attractive here are $IOC and $AKRX.
Keep on rolling…..keep on rolling….ooooo oooooo ooooo
http://www.youtube.com/watch?v=_AcFTy9m4JM&feature=related
LoL
It may just be that the indices need to break through their previous highs set back in April before we see a deeper meaningful correction; this would be a false breakout and be extremely bearish. This scenario is something to watch out for.
Great point.