Tuesday, July 20, 2010

Market update

S&P500 Chart:
In my previous post, I talked about possibility of a bounce from 1055 level. S&P500 tanked to 1056.88 and we got the short squeeze again. Bond market sends mixed signals, which is in contradict with today short covering rally. It's too early to come to any conclusion, but I need to see if it has any follow up or not. If this rally has some legs, it must get above 1100 & 1130. Today moves brought the S&P500 right beneath the down trend channel. Please note S&P must get above 1100 by Friday. Failure of close above 1100 by friday means we are going to head lower in coming weeks. It would be interesting to see can they send S&P above 1130 or not?