Wow, the market never ceases to surprise does it. Just yesterday the Nasdaq hit resistance as institutions favored selling once again which led to yet another day of distribution (for the sixth time this month). That momentum continued in the first hour or so of trading. I remember looking at the SelfInvestors Leading Stocks Index over there on the right and seeing decliners outnumbering advancers by 4 to 1 with heavy volume. Looking over there now and you can see it has completely reversed! This kind of move most likely signals that a bottom has been put in (at Nasdaq 2025, Dow 10233, and S&P 1168). However, the indices still face resistance.. and very soon, possibly tomorrow. It will be very interesting to see how the Dow handles 10,500, the Nasdaq 2100 and the S&P 1200. Those are key resistance levels. I would imagine that the indices will retreat from those areas with light selling volume and will need a few tries to finally push back above those levels. Pay close attention to which stocks\/industries\/sectors lead in the coming days. They will be your leaders should the market stage a year end rally. I’ve got my eye on anything medical related and still feel like we haven’t seen the end of the oil run. Take a look at one of the first oil companies to report this earnings season – Lufking Industries (LUFK). Whether oil is at 70, 60 or 55, they will continue to make huge profits.<\/p>\n","protected":false},"excerpt":{"rendered":"
Wow, the market never ceases to surprise does it. Just yesterday the Nasdaq hit resistance as institutions favored selling once again which led to yet another day of distribution (for the sixth time this month). That momentum continued in the first hour or so of trading. I remember looking at the SelfInvestors Leading Stocks Index … Continue reading Massive Capitulation<\/span>