Tuesday, May 19, 2009

State of the Market - 5/19/09

We had a slower day today on Wall Street, as trading was choppy for most of the day and the indices didn't move much at all. The market started basically flat, fell quickly, but then rose sharply again at 10:00. This pullback/take off action continued for the rest of the session, until a late pullback caused stocks to finish basically mixed on the day. Volume once again looks quite low and that is a little weird - two days in a row of very low volume. It was slightly higher than yesterday on the Nasdaq but overall volume has been well below average the past four sessions.

Technically, we're basically still stuck in a little range here and I am not planning on making any large moves until we move out of it one way or the other. 875 and 930 are the numbers to watch on the S&P. It is looking very possible that 930 level will be challenged since the 200 day moving average is coming down into that area as well. The Nasdaq did climb back over its 200 day moving average today, but I can't say that it has really "claimed" it as it looks basically still like a battlefield. A move above 1773 would put it well above the 200 day and confirm in my opinion another leg in this rally. Interestingly, both the S&P and Nasdaq look to be challenging the bottom trendlines they both broke through to the downside last week. I am interested to see if they can break through or fall back here after testing those former trendlines.

I kept my eye on a few names today but really wasn't that interested in what was happening or making any moves. I thought long and hard about GTLS, which broke out above a decent flag patttern based on earnings and has good IBD ratings, but I ended up passing. I just still don't feel this market one way or the other right now. I think we are likely to chop for a little longer here before the next trend emerges.

I have to go as we are getting ready for new countertops tomorrow but if I find anything interesting in the scans, I'll try and share. Good luck and take care.

No comments: