George Brooks: Easy Does It !

George Brooks |

Brooksie’s Daily Stock Market Blog: An edge before the market opens.

Friday, March 25, 2011 9:23 am EDT

DJIA: 12,170.57
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.

George Brooks
sensiblesleuth@gmail.com

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
PRK Park National Corporation 107.34 -0.02 -0.02 27,892

Comments

Emerging Growth

NXT-ID Inc.

Nxt-ID Inc provides products, solutions, and services that have a need for biometric secure access control. Its lines of business include mobile commerce; law enforcement and biometric access control applications…

Private Markets

WayBetter

The spark hit Jamie when he saw co-workers competing to lose weight. Instead of pizzas and subs, they were eating salads and jogging along the river. Some were sneakily leaving…

Santo Diablo Mezcal

Santo Diablo Mezcal has been created to capitalize on a boom sector of the beverage market currently full of many small unmemorable products by producing one sexy, household, easily recognizable…