Wednesday, October 7, 2009

State of the Market - 10/7/09

Following up two rather interesting days this week, the market gave us a dud today, as stocks did very little but move sideways in a very choppy manner today - for example, the S&P had an intraday range of about six points today. Not very exciting. Volume was much lower as you would expect from such a slow day.

This post is going to be short because from a technical aspect, nothing really changed from yesterday. We are still sitting right below former trendlines on the S&P, XLF, and USO and are either pausing today before busting through them to the upside or pausing here due to short-term exhaustion and will fall back from here soon. I still don't know which of those events is more likely, so as I stated yesterday, I am neutral and watching setups on both sides of the market. Please check out yesterday's two posts for a better, more detailed explanation.

With earnings season starting soon, I am sure we will see some fireworks, so be prepared. Good luck Thursday.

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