Tuesday, March 24, 2009

Buy The Dip?

Tuesday the markets pulled back after testing 820 and failing. We ended up down around 802 after a last hour selloff that was mostly due to the treasuries rallying big. I think the pullback could continue a bit longer but if this 805 area of support (previous resistance) holds up then we could resume the recent rally and make a charge at 850. The daily chart now has an uptrending 20 day ema at 770 giving us more support if we somehow fall to that level.

For Wednesday the pivot sits at 808 and we are bouncing a bit after hours but still a few points below the pivot. We should have a continued pullback if we stay below that pivot intraday. Below the 790s and I think we could retest that 770 area where their is a gap. However, in the grand scheme of things I think this current dip is a buy as I am bullish for the intermediate term.

2 comments:

Michael Comeau said...

I agree on the dip - it seems like EVERYONE says we're due for a breather which to me indicates that there's a bit more upside to be had near-term.

Now if it was only easy to pick the stocks...

Jason said...

Yeah agreed. I'd go with the strongest stocks in their sectors.