His call for this week:
If the script continues to play the pullback should end today or tomorrow with the equity markets re-rallying to a higher high before becoming more vulnerable to the downside. The “tell” for if this pattern is going to play should be the financials; they need to stop going down! Nevertheless, while we have been constructive on stocks since October 10th, thinking the upside should be favored into mid-January, it is now indeed mid-January; and even if we get our prescribed “look” above 1000 on the S&P 500, it is pretty late in the game. If I had one group to focus on from here it would be the energy complex, preferably energy stocks and ETFs with a yield, since I continue to believe energy made its capitulation low back in December.
Indeed, as it was noted in this post last week: http://thefrugalplain.blogspot.com/2009/01/bullish-danskes-technical-outlook-s.html,
the key levels remain in the 850-855 area ... see chart, or follow yourself here at StockCharts.com:
http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=6&dy=0&id=p95042521081
But watch banks and financials as they appear the weak link, like here: http://thefrugalplain.blogspot.com/2009/01/kbw-bank-sector-index-monitoring.html !
But watch banks and financials as they appear the weak link, like here: http://thefrugalplain.blogspot.com/2009/01/kbw-bank-sector-index-monitoring.html !
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