Tuesday, May 26, 2009

Rally Time?

First off I wanted to say sorry for not being able to post the weekly outlook yesterday as I have been out of town with no internet since last week and finally back today. Secondly, wow what a rally in the markets out of the gate on Tuesday! After the consumer confidence number defied logic the SPX ripped thru 900 and closed at 910. Definitely an important bullish day but on light volume and thats what has me a bit cautious after a long weekend. I still am thinking we could more or less trade in a range between 880 and 930 for the remainder of the month. The break of either direction should tell us the direction of the next leg the market takes for the summer perhaps.

For Wednesday I want to be cautiously bullish and expecting the market to test support around 900. The pivot is at 899.25 so that area could see some buyers step in intraday and lift this market higher. Like I said earlier I would not be making too many big bets in either direction until this range we are in is broken.

In the coming weeks I am hoping to start issuing a weekly watchlist and focusing on stocks with great trading setups on the charts.

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