Wednesday, March 4, 2009
Market Ready to Jump?
Wednesday was an up day that seemed to get everyone pretty darn bullish. I don't really think it was that impressive of a day with the last hour sell program and lack of financial sector participation but call me crazy. Nonetheless we did finish above some key levels, like the daily pivot for tomorrow so can this market be ready to jump on Thursday?
I think there is a decent chance at seeing a short covering rally into the weekend from here. Of course dont fall in love with the upside but dont be surprised to see it. I would definitely think that the banks need to rally in order for any bounce to sustain itself for more than a day in this environment. Wednesdays rebound was mainly due to the new Chinese stimulus that got all the commodity bulls jumping.
For Thursday, the pivot on the ES sits at 711.75. We have sold off after hours and are trading a bit below there. I think you gotta expecting a continuation rally off todays move as long as we stay above the pivot. The end of day selloff was not great but I think it was just a sharp pullback after that midday run up. Until it proves otherwise, with something like more selling below the pivot, then I think we could actually run into the 730s at a minimum with an eventual retest of that big 741 ceiling.