Online Stock Trading | Late day rally represents Day 1 of a new rally attempt

Late day rally represents Day 1 of a new rally attempt


Filed Under Market Commentary |

At 3pm today stocks looked like they would slump into the close after the Nasdaq hit a 52 week low. Rallying into the close the Dow Jones Industrial average raced up .48 while the Russell 2k lead the way moving higher .58%. We are heading into a new market rally attempt with today’s move.

Tomorrow will be an interesting day as Bernanke will face the Senate Finance committee and his comments will move markets. If we see any type of distribution days we’ll more than likely see this attempt fail like the others since May. Bernanke could prove to be a dagger in the market’s back. Otherwise, we’ll be looking to see a market follow through with an index jumping more than 1.7% on volume greater than the previous day this Friday thru the following Friday (day 4 to day 9).

Path of least resistance is still down for the stock market. The only way this changes is if we get the follow through.

Oil’s exhaustion gap on Friday, not Thursday (I apologize) has proved to be correct at the moment. I still believe the tide has turned and the path of least resistance is now down. Look for the OIX to move to the downside. Please move out of drillers as they’ll be hurt most by the slide in oil.

Until tomorrow!

MktSpec

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