The S&P 500 finished the day with a little spike and closed just under key resistance at 1200. It was a peculiar mix of action with some very strong performers like CRM in the cloud computing group and a number of coals, miners and commodity plays heating up as well. On the other hand, key stocks like GOOG, AAPL and PCLN were in the red and banks lagged once again.
It is certainly a positive that we were able to take on some minor gains to yesterday's big oversold bounce. The setup for a move through 1200 looks quite good. I would not be at all surprised to see this bounce gain further momentum and give us yet another V-shaped recovery. One additional positive the bulls have going for them is that Thanksgiving week often is quite upbeat as the holiday spirit takes hold.
I don't want to be too sanguine after the breakdown we have suffered recently, but the bulls are doing a pretty good job of recovering. Europe could still present some problems as it wrestles with the sovereign debt issues, and China stocks have not been acting well recently as efforts to cool inflation play out. On the other hand, we have technology and mining stocks acting well, and that isn't bad leadership. There are some interesting setups, and if we have upbeat holiday trading, it could turn out well.