Monday, June 28, 2010

Update

I thought that the market would rally to 1085 today. But the fact that it wasn't even able to reach Friday's 1079.50 high before breaking once more below Friday's close and today's open is a sign of weakness.

So I think that we have seen the day's high at 1078.50 and that the ES is headed for 1058 before it can stage another rally.

2 comments:

Naveedah said...

The bigger picture story remains the same – bulls continue to make the “stocks are cheap” argument (this was in the WSJ and USA Today) but the behavior of Treasuries (2yr yields setting record low levels) are signaling that not all is right in the world. The fact we are entering a news vacuum over the next fortnight (except for this Fri’s jobs report) until earnings and the European stress tests hit (AA starts off earnings on Mon Jul 12 and the EU bank tests are due to be published on Thurs Jul 15) will keep larger long- onlys on the sidelines. For the quicker traders, the 1040/50-1110 trading band will continue to dominate.
Your updates are highly appreciated.
Obliged.

sandy allred said...

Yes, thank you for your updates. Very good. The decline into July 6 now appears to be without significant reaction. A healthy dose of fear shall be administered before the uptrend resumes.