Thursday, July 22, 2010

Market Comment 07 22 10

The market was up nearly 2% on Thursday. Breadth was 90% to the upside. Good earnings reports from a number of companies appeared to have been the catalyst.



The S&P 500 broke above it's trendline (T1) decisively. Furthermore, it closed above it's 50 day moving average after many failed attempts. In the daily chart we now have established a higher low, the first step of a potential market reversal to the upside.

Key resistance is at 1100 (R1). A break above resistance would force the bears to cover their short positions, and in the process their forced buying would propel the market higher. A further push above 1130 would give a very strong indication that the bear has been beaten back.





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