Brooksie’s Daily Stock Market Blog: An edge before the market opens.
Friday, March 25, 2011 9:23 am EDT
S&P 500: 1309.66
Nasdaq Comp.: 2736.46
Russell 2000: 817.10
Referring to the prospect of a solid open yesterday, I said there was a chance that the DJIA would get to 12,190 and the S&P500 to 1310, but the “odds of a rally failure after a big pop are even – Careful !”
Both market averages hit those levels then sold off, but not enough to comprise a rally failure. The stock-index futures suggest a positive open today.
Obviously, the market’s rebound is due to an improved outlook in Japan, NATO’s assumption of operations in Libya, clearly a lightening in an oppressive uncertainty hanging over the market.
However, we are entering levels where stock prices broke down in February and again in March. These areas (DJIA 12,200 – 12,400) and (S&P500: 1325 – 1340) should produce some overhead supply (selling), thus some risk for new buyers.
The Nasdaq continues to lag to DJIA, S&P500 and Russell 2000, due to weakness in the tech sector. I would expect some catch up there, but generally a consolidation in the rest of the market. Pick spots carefully.
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