MARKET WRAP UP 02/01/11
The dip-buyers who stepped in last Friday enjoyed a spectacular sequel to yesterday’s bounce, as the S&P 500 screamed higher to finish up 1.67% to 1307. The materials and technology names led us higher, as breadth was impressive overall, despite modest volume. Regardless of whether today was some sort of first day of the month phenomenon, the bulls were able to clearly print a fresh 52 week high on the S&P.
Nonetheless, the small caps, transportation stocks, emerging markets, and even Nasdaq Composite all failed to confirm the new high. Indeed, the trannies and emerging markets continue to sport technically damaged charts. In the coming days, these divergences are sure to come to forefront as they are likely to be resolved one way or the other.
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thanks for the update. yet another low volume ramp up overnight to get us over resistance … so now we have 25 gaps to fill below. lol. this market is nuts…
who says all gaps get filled?
This market sure is nuts. It is beyond euphoria. When it breaks down, it is going to break hard. For now keep enjoying the fun. I think we chop more before we choose a way to go though. If we get one more huge up day tomorrow, I think the bull market is over. If, on the other hand we have a small up day, it will keep grinding higher for the foreseeable future.
The one interesting thing going on now with Egypt is that it looks like the people are not willing to let Mubarak stay in office until September. If there continues to be demonstrations tomorrow, the situation is going to get really dicey for everyone there. Violence will definitely start to become a major issue, and that is when the market could start to finally fall apart.
We shall see what happens.