Despite the mixed close in the major averages, Dow Industrials (+0.085), Dow Transports (-0.62%), S&P 500 (0.00%), Nasdaq 100 (-0.02%), and S&P 600 (+0.25%), there were signs that a short-term bottom is forming. The market internals were positive but the A/D indicators have still not recovered from last week’s heavy selling. As I discussed in yesterday’s column, a rally over the next week or so is likely to go further and last long enough to cause a transitory shift in the short-term sentiment. The Euro zone markets are trying to stabilize early Thursday despite Italy’s GDP numbers that suggest it may be slipping back into a recession. The US futures are trading higher in early trading but it is the close today that will be important. The September S&P futures formed a doji Wednesday so a daily close above 1923.50 will trigger a high close doji buy signal. So, what should the investor or trader do if the market does see a sharp rebound?
Reported by Forbes.com 4 hours ago.
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