Volume should start to pick up this week now that the professional money managers are returning from vacation. The inverted head and shoulders pattern on the S&P has not yet confirmed, but prices are ripe for a wall-of-worry climb if that's what the pros have in mind.
With the NASDAQ taking the lead and moving right back into its broken uptrend last week it's hard to make a strong bearish case on the technicals. In fact, the financial sector, which has been choppy, continues to see strong money flow indicating it remains under accumulation.
This makes sense since the sector collapsed on the unknowns. Now that it is known that the Fed is willing to step in and bolster it, and especially now that Bush has offered up a plan to bail out the banks who were facing a sub prime crisis, it stands to reason that prices will once again seek their averages.
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