Wednesday, April 29, 2009

The Importance of 877-880 Resistance

We had failed to move above the 880 resistance level in S&P500 for the fourth times. Today market moved above it for a couple minutes then we moved lower on high volume. I need to remind my readers that as market goes higher volume deminishes!

We are getting closer to the May 4Th that public will get the results of stress test. The Wall st could play it famous game " buy the rumor ,sell the news" .Market became over bought, 3 weeks ago ,but we did not get the pull back that everybody is looking for; which makes this rally unreliable or as we call it on the floor "dead cat bounce".