Friday, February 06, 2009 9:21:24 AM
After the bad Eco news, markets are trading at pivotal juncture, closing above the noted resistances is hopeful and the market action could spark short-covering and buying interest. But, market sentiment is quite bearish. Qs is trading at 30.68. Good luck
Major markets are trading near at pivotal resistances: SPX 850, DOW 8100, Nasdaq 1550, and Qs 30.80 going into the stimulus plan voting. While daily and weekly price momentum is developing to upside, intraday price action is now showing negative divergence. If market sentiment is healthy and bullish, market price actions can move up with strong advance even with negative divergences. That is not the case as market sentiment is quite bearish and edge. Nevertheless, breaking above the noted resistances is quite positive as the resistances are pivotal for further price advancement to SPX 900/1000. Of course, failing to break to upside market will revisit the Nov 2008 low.
Major markets are trading near at pivotal resistances: SPX 850, DOW 8100, Nasdaq 1550, and Qs 30.80 going into the stimulus plan voting. While daily and weekly price momentum is developing to upside, intraday price action is now showing negative divergence. If market sentiment is healthy and bullish, market price actions can move up with strong advance even with negative divergences. That is not the case as market sentiment is quite bearish and edge. Nevertheless, breaking above the noted resistances is quite positive as the resistances are pivotal for further price advancement to SPX 900/1000. Of course, failing to break to upside market will revisit the Nov 2008 low.
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