The most important thing the stock market did yesterday was to bounce back steadily following a sharp sell off shortly after the market open. This suggests buyers are there on dips.
Today: Solid open with a chance the DJIA gets up to12,190 (S&P 500: 1310). Odds of a rally failure after a big pop are even – Careful !
While yesterday’s market action was impressive and today is off to a good start, I think there is risk in chasing stocks here. Nasdaq stocks may be an exception, since on the whole, they have been lagging the rebound that started six days ago.
Volume of trading was light Tuesday and Wednesday, a slight negative.
Brooksie’s Daily Stock Market blog: An edge before the market opens.
Thursday, March 24, 2011 9:23 am EDT
Nasdaq Composite: 2698,30
Russell 2000: 811.24
Jobless claims for the week ending March 19 were down 5,000 to 382,000 – acceptable and even good in that they are not up.
Durable Goods for February were down 0.9 percent versus +3.6 percent in January, 80 economists surveyed by Bloomberg News expected an increase of 1.2 percent - a negative, but not deadly.
Neither report had an adverse impact on the U.S. stock-index futures shortly after 8:30 when they were released – positive, but …..
We’re kind of in limbo here, a time to read between the lines. My gut says we roll over into a sideways trading range as Wall Street digests the post-earthquake/tsunami/nuke fallout and its impact on global economics and international developments, which are inconclusive at this time.
We had the correction I expected, and it shook the tree adequately to clear the overhead supply of stock. I just don’t see a “straight-up” market from here, not without some more back ‘n fill in stock prices.
Again, Nasdaq stocks can offer some attractive opportunities.
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