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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