The market sold off in the first 30 minutes which is what I thought it might do based on the short term charts. It then made a strong rally with energy stocks leading the way. We closed the day at 927 on the S&P 500...just 3 points from the 930 resistance area I had mentioned in previous posts. There are a few divergences forming that show some possible downside to the market in the near future...possibly after hitting this resistance area. Look for a gap up (or rally up) at the open and see if it can break above the 930 resistance. If it stalls there and starts to sell off hard, we could get a bigger correction. This is what I am looking at for put option opportunities. I'm also watching the Dow Transportation Average. This is often a leading indicator as to how the economy is doing. It was down today...even with the DOW and S&P posting some nice gains. The short term trend is still up, so we don't want to get so bearish that we miss opportunities if the market keeps rising. I do still like most of the stocks that I posted yesterday so keep watching those. I would include BAC and JPM in the list.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment