Wednesday, January 26, 2011

Higher high

SPX made a higher high today, nothing spectacular, just one points above the previous one but the fact is that once again market looks bullish on all time frames. However, I won't be surprised to see a small pullback on short term since price is now 17 points above SMA 120, a little bit too much after such a long rally. I was looking for some signs of bearishness, a small intra-day sell off after SPX touched 1296 or when Dow hit 12,000 today but none of them happened.

Dollar took another hit after Feds decided to leave the rates unchanged.

Tomorrow we are going to see another round of earnings. In the absence of any Obama's speech or Fed meeting, earnings should be the only fundamentals driving the market. T, CAT, PG, all Dow components are going to report before market and these earnings are suppose to move the market up or down. MSFT and AMZN are going to report after hours.

Very frustrating days for bears that are waiting on the sidelines to go short but it pays to wait for a sell signal than trying to guess the top.

All the best!


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