By John Pisanchik

Well today was an important rally day. I would have liked to have seen this rally yesterday, but the rally did occur and I’ll take it. The run up today should be close to re-establishing the up trend (which started 3/6/09) and was broken on April 20, 2009. Now there is something very important that has to happen here, and that is follow through. Tomorrow’s market (4/30/2009) must continue this rally, and we need move up through 885. The reason is that there is a good amount of overhead resistence here. This is a big one at approx 885 in the S&P Cash. So tomorrow must get through that and hold it on any intraday testing. If the market get above this level and holds it, then the rally should have a short term objective of approx 910. There is a band of resistance between 910 and 930, so the market will have some work at those levels.
What happens if there is no follow through tomorrow (4/30/2009)? Well the re-establishment of this uptrend is fragile, so a failure tomorrow would point to the rally fizzling out. But lets not talk fizzle before it happens, either way, tommorrow and Friday should be exciting days in the market.

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