Market Review 7/18 Earnings Rally

Going into earnings I was little pessimistic.  The last 3 months much of the economy has slowed, hiring has slowed and jobless claims were not dropping like in January and February.  So far earnings have been a little surprising.  JP Morgan and Wells Fargo last week did exceptional for banks, and now some of the tech firms like Intel and IBM (announced after the bell) look to bring a pretty decent profit.

So as these corporate results are beating estimates the market is rising and it seem that right now earnings are helping this market rally.  The absence of anything from Europe has been helpful to continue to fuel the market rally, but you never know when Europe will erupt.  That is the uncertianty.  Europe is always the wild card.

The Fed stands ready to act Ben said, "  "I don't want to imply that we've done everything we can. We may do more in the future," Bernanke said. "It may be possible that we will take additional action if we conclude we are not making progress towards higher levels of employment."

As for the rally ti continues to break barriers $136 a few weeks ago was met by a nast sell off and the push up was not followed by volume.  This time around we have a little more volume on this push and the price action looks to be showing the rally still has some legs even up into $138-$140.

The caution if we push into $140 is that has been established as a market top and with all the certainty still out there this rally looks to be more short term and will be met with selling if the price action take the SPY up to $140.  Remember be aware of the pattern and trade the chart, and right now the charts are reading short term and intermediate down side.



Market Update Currently as of the time of this article Asian Markets are up:

This may continue to spill over into the Europe and US markets in the morning.  To get an update on US Index Futures go to Finviz.comhttp://finviz.com/futures.ashx

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Disclaimer: This article is intended to be informative and does not constitute a buy, hold, or sell recommendation., and should not be construed as personalized advice as it does not take into account your specific situation or objectives