Despite a couple of days of frenzied buying this week, the S&P 500 failed to fully recover from the big red bar on Monday. It looked like things were ready to crack when we sold off and threatened the uptrend line, but some good responses to earnings reports from the likes of MSFT, AAPL and AXP helped matters quite a bit. Also, banks recovered from the Monday beating as the focus moved to the government stress test. I'm not sure that clarified anything, but it kept the bears from leaning harder on the financials.
Once again we had some big swings late in the day. We sold off initially on the stress test news but the dip-buyers jumped in and we squeezed to a new intraday high before another bout of selling in the final minutes.
There has been a lot of very frenzied action in individual stocks to go along with these late-day swings. It is tricky trading, but there is no doubt that hot money is looking for a place to go. Performance anxiety and underinvested bulls are keeping a bid under this market, but some stocks are certainly extended and entry points are difficult to find.
There is plenty of technical resistance here for the major indices, especially at 875 on the S and P, but individual stocks are trading better and we have to focus on that.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment