The long awaited event has come and gone. President elect Obama has now to wait two months before he can start his agenda. In the meantime, there appears to be a continuation of the leadership void in the US. As well, the economy continues to spit out data with a recessionary tone. Both suggest we shall not get any upward push in prices for the time being. There was talk of a new stimulus package coming from the new congress, but until that happens prices may move lower. My hunch is we have seen the lows of this cycle BUT we may see the lows tested in earnest. We ain't out of the woods just yet my friends.
Currently the market is in a trading range btween $101 on top and $84 at the bottom. A close above or below this range would suggest a short term trading opportunity. The market is still bearish because the 13EMA is still below the 30SMA. And (as suggested previously) any rallies should be considered trades only and may be met with stiff selling resistance at or near the $110 level on the SPY. I can't imagin the $84 level will be broken but if it is one ought to look for a move into the $58 range (lets hope this insn't the case). Regardless, trade appropriately.
That's all for this week,
Brian Beamish FCSIthe_rational_investor@yahoo.com
the-rational-investor.com
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