Online Stock Trading | Late day reversal lifts Dow and S&P

Late day reversal lifts Dow and S&P


Filed Under Market Commentary |

Stocks sold off through mid-day. Al-Zarqawi’s death did nothing to drive any positive momentum in the early portion of the trading session. Selling accelerated throughout the morning and afternoon. Buyers stepped in and saved all the major averages from the depths of heavy selling action.

Dow + .07%
S&P 500 +.14%
Nasdaq -.04%
Rus 2k -.04%
S&P 400 -.47%
S&P 600 -.14%

Was this a key reversal? IBD is calling this Day 1 of an attempted rally. Having the S&P 500 index end higher on heavy trade counts this as Day 1. I remain skeptical, another IBD indicator is its CANSLIM select picks. At the moment it sits at 50% active. It has remained there for over a week. I’d would have liked to have seen this number at least jump a few percentage points. My Watch list has shrunk down to 12 names…definitely not what I want to see in a new rally.

The fact remains that today is Day 1 of our third attempted rally. I am not putting much stock in this attempt but, we must remain ready if we do see a follow through within the next 9 trading sessions.

On the sidelines sitting on your cash is the best place to be. Again this weekend I will pull together my watch list for the week.

MktSpec

***NOTE*** I will be on vacation June 17th through the 24th

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