Friday, January 2, 2009

Party Like It's 2007..

So if you woke up today and were a viewer of CNBC you might have thought we turned back the clock to a few years back or even started the next great bull market.

Lol, umm no.

While this move does look good on the chart and we have finally broken out of the month long range below 920, I would like to see the big volume come in next week and provide a continuation move.

Bottom line is now that we have closed over 920 on the SPX we have a nice floor of support below us. Get long on some swing trades here and stop yourself out on a close below 910ish. Like I have been saying since early December, I think with this close over 920 we could see a nice short squeeze of a rally up to the 1000 level. Perhaps a bit closer to the 1020 area into the Obama inauguration.

I have a bullish bias above this 910 level. An interesting thing we saw today was that new highs outpaced new lows for the first time in awhile. Not by much but nonetheless we saw more new highs, which is bullish.

Looking forward to seeing regular volume come back to the post-holiday market next week.

1 comment:

darryl sansalone said...

Got to get those financials free, then keep the hedge funds unregulated and we will fit by years end