Friday, June 19, 2009

State of the Market - 6/19/09

Kind of a nowhere day today on Wall Street, as stocks started the day well, pulled way back midday, and bounced back into the close, but still basically finished mixed for the day. Stocks started well, rising for the first hour and a half of trading. From there, they fell quickly and sharply until around 2:00 after they couldn't break to new highs. They bounced at that point, but couldn't get past overhead resistance at the morning lows and drifted back down into the close. The Nasdaq outperformed with decent gains while the S&P was up only slightly. Volume was heavier due to the options expiration.

Technically, there isn't much new to say. The head and shoulder patterns remain a possibility and until the S&P gets over 955 and the Nasdaq over 1879, I am remaining slightly bearish. The S&P did get up to that 925-930 area that was former resistance but couldn't bust through and reversed at that point. I have not yet gone through my scans and probably won't be able to until Sunday, so I don't know how individual stocks held up today.

Since it's the weekend, I am making this post short. I will be back on Sunday with more thoughts but my main thesis that the next few weeks will likely be choppy without much direction is still intact and I don't expect to trade much. If these right shoulders do form, then I would start looking to get short. I think it is still probably a little early to do that. Take care and enjoy the weekend.

No comments: