Friday, November 6, 2009
S&P Hits Resistance, Waiting for Top Now
With the Fed announcement and jobs number out of the way, we can focus on technicals again. The market started off weak, Dow down about 55 at the open, but rallied right after that well into positive territory where the markets are pretty much flat right now. Internals have a slight bearish bias to them but nothing spectacular. Financials (XLF) are really struggling today, down over 1%, and the Russell 2000 is modestly weaker than the Dow and S&P, but it was much stronger yesterday so it kind of balances out. Nothing is really standing out suggesting a top is in other than the fact that the S&P has bumped up against my resistance line (shown in attached chart) and has retreated a little after doing so. The dollar has been relatively flat the past few days so there are no signs there.
So again, we watch, and wait for the wave (2) top and reversal. A break of the S&P cash 1045 would strongly suggest a top is in place and the next round of heavy selling is underway. If anything stands out as the day goes on I'll mention it here.