Market Summary for April 3, 2009
This will be a quick summary, watch for the full video summary which will be up on Saturday.
I continue to hold my view that the market is setting itself up for a pullback very soon and this is why I did not close out my short position today and decided to hold it over the weekend.
Many charts and indicators all communicate an ‘over bought’ condition and price levels on numerous charts are at what I will say is significant resistance points.
What was most important about today was that while the market was up, the volume levels were significantly lower, giving further technical evidence that this bear market rally is in the hesitation mode and a pullback is approaching overdue. A violent pullback appears to be in the making at this juncture.
More details in the video summary on Saturday.
Check out “Scences From The Recession” photographs from the Boston Globe (hat tip to Mish)
You seem to be right Chuck, that the markets are over bought.
What needs to happen is for the profit takers to act and the ensuing panic of late buyers and over margined to panic on their way out.
The willingness to find any glimmer (or illusion) of good news within all the negative reports is part of the support along with the various types of window dressing that takes place at the end/beginning of the month and quarter.
The higher it goes the harder the fall.
as much as i am looking for the market to drop… i feel one must respect at least a 38% retracement of the s&p back to the 900-920 level.