Markets consolidated today after the big rally yesterday. What markets will do next? In this volatile market, we can only be sure after what happened; however, markets are showing some positive sentiment as we can see the market action yesterday and a consolidation today even though we have not seen a strong buy interest with higher volume. CNBC network was broadcasting negative sentiment all day. While markets signal a good potential for a meaning bottom, we need to see a break above the HOD today as noted below. To reiterate, daily and weekly price actions and market breadth are showing positive divergences, therefore, a continuation after a good consolidation period will certainly be encouraging signs. It would be a good idea to reassess on weekly basis, other than daytrading, since we are in volatile markets.
Wednesday, March 11, 2009 11:11:42 AM
Markets are trading at pivotal resistances: Intraday HOD so far SPX 731.92, SPY 73.75, Qs 27.99 -- consolidating near at R1 which was the case yesterday. A follow-through day with the rally yesterday would provide some positive sentiment as markets are oversold and now daily/weekly indicators are showing a sign of price improvement with internal positive divergences -- targets to RST formation wave upside, Qs 34 +/- and SPX 850 +/- -- with the impulse wave, so far, in progress.
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