Thursday, June 4, 2009

Bulls Emerge

Thursday the markets bounced back and retraced more than half the losses since Tuesday. We closed up at 8750 on the Dow and 942 on the SPX. This market wants to go higher. It is telling you that after every pullback that only lasts a few days at most. I was sort of thinking we could come back to test the 915 area before we resume the rally but we raced higher all day and Friday now sets up as another potential short squeeze into the weekend if the jobs report comes in better than expected. I would not be surprised to see the SPX up over 950 or higher Friday.

It will be interesting to see if oil can break 70 and if the dollar sells further into the weekend. Oil looks very toppy up here imo. Tech and banks also hold the key to this market jumping higher and the banks especially on Thursday were strong. If these sectors continue to rally then this market will see 9000 on the Dow soon. For Friday the pivot on the ES futures is 937 and that should be the line in the sand to determine who goes home happy; the bears or the bulls. Below that mark and we could give back all of Thursday's gains quickly.

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