Thursday, March 17, 2011

State of the Stock Market - 3/17/11 - "Unimpressive"

It's halftime of the basketball game (very unimpressive start for my Pitt Panthers by the way) so this post will be short.   We did see a long overdue bounce today on Wall Street, but it was far from impressive.   Stocks gapped up, immediately pulled back, and then tried to rally to new highs.   When they couldn't do so, they started rolling over a bit in the afternoon and finished at their lows for the session, albeit still with gains.  Volume was a good bit lower than yesterday. The action was very weak and paint a picture of a market full of very weak bulls.   If this is the best they can do after the beating given the past week, it is not a good sign.   

I remain in cash but am looking for shorts to setup over the next few sessions.   A move up into the 2680 area on the Nasdaq may be a gift as there is heavy, heavy resistance there.  I don't think it's time to jump on anything yet as we still could see further bounce, but the market is definitely weak right now and the fact that we didn't see a sharp rally today tells you a lot.
Charts from Telechart, Courtesy of Worden Brothers, Inc.

Things can always change and if they do, I'll let you know, but for now, start getting your short watchlists ready and maybe by next week some opportunities will emerge.  Good luck Friday.


Marco said...

Hi Mac:

I think you meant heaavy resistance at 2680, not 2780


Mac said...

Fixed it - thanks for pointing that out. I guess I was rushing to get back to the basketball game.