Friday, June 4, 2010

Market Comment 06 04 10

The market has been shifting in and out of an oversold condition the last couple weeks. After failing to break through resistance at the S&P 1106 area on Friday the market pulled back sharply. In a bull market we expect vigorous rallies out of oversold conditions. Instead, the market is barely holding its own.

The market has yet to breach the important support levels around S&P 1044; if we get a close below that we could see the market potentially decline to the S&P 950 area.

At the moment we have very little exposure to the stock market. I am prepared to take further action to protect account assets if required.




(Click on chart to enlarge it for easier viewing)


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