Tuesday, September 18, 2012

Market Review: SPX to 1420


Most of what we are seeing in the markets is a result of consolidation and taking gains.  Today was more of the same as most major indexes are beginning to pullback as the market cools off from the heated rally the last 2 weeks.  Some realities are setting in that maybe the market is slightly out of touch with real economic condition.  Not to say that we are heading into a recession or anything like that, but we just seem to be still moving up hill in mud.  There is a lot of drag on the economic situation right now, Europe will continue to be a drag, and unemployment for us.  FedEx today cut there profit outlook which says there are still issues to work out in the economy. 

On a slightly brighter spot for those of you who are trading or own apple it hit the $700 mark after beginning the year at a little over $400.  So the technical picture is still one of consolidation/pullback.  Most of the indicators are oversold and the price action is pulling back.  There is still a bullish trend and the SPX could pullback to 1420 which would be a natural bounce point for the SPX to continue the up trend.

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