Last week's 2.74% SPX recovery rise is pretty well summarized last Journal. Friday’s action did not nothing to deter from the trading premise here with tech earnings being the missing link in a move higher post consolidation early in the week. The ease the market broke through 1314 ‘R’ in early trading before wavering some in the afternoon makes you think it’s just a question of time before we test February highs. There’s a cluster of “R’ around 1313-1319, but once a close occurs over, the market will have higher sights in mind and it should happen this week. Simply, the recovery reversal of nearly 70pts trough to peak is only 7-8 days old and many are behind the ball on it (as in surprised). This coming into a month end/Q end is where a PA pill (performance anxiety) will likely be swallowed by managers to play catch up. This non-participation is also evident in the rally’s volume, this negative may turn into a positive as some larger managers may chase. As Traders you can’t predict any further macro shocks, so you work with what’s in front of you and window dressing is it as we enter a corporate quiet period before next Q earnings. A few notable eco data points Friday (Global PMI’s,NFP#) coinciding with QE2 hitting the street.
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