With that said I think for Friday we are going to be stuck in this range for a bit more. 890-910 seems to be a lock for the weekly close. My guess is we pullback a smidge Friday. The pivot for Friday is 900 even and that important level could act as a magnet for this market. I see a rather quiet day coming but we shall see. Next week should be a lot more interesting imo as the SPX is poised for a nice sized move in either direction; with my bias being up.
Thursday, May 28, 2009
Thursday the SPX grinded mostly sideways early on before ended the day on a plus note closing around 907. There are several bullish things coming together in other markets to make me think the probability of a higher SPX is coming. The EUR/JPY is rising lately sharply telling us that people are taking more risk and that means stocks will see more buying. Also the dollar is not showing much strength at all even on these weak bounces this week. This should continute to boost stocks in the intermediate term. Lastly, energy, banks and tech--the sectors that began this rally--are still showing bullish patterns and this is all good for the SPX going into June. I think the 875 area could prove to be a major floor in the SPX.