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)