Sep 15, 2010

Is Market Losing Steam?

It’s been really good month for the markets so far. S&P500 has gained 6.60% month to date, inspired by few positive macro news or US economy. Better unemployment claims and retail sales helped fuelling the best rally since July. However at the moment markets are entering losing steam area. At this point every bad signal for the economy is excuse for cashing profits thus pushing prices lower.

The chart shows successful brake over first resistance and moving forward to current level which is between double top resistance and 200 moving average. Still there is more room to grow as market breath indicators are not overbought, but close to this level. Considering that situation recent market moves has to be cautiously followed.

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