Nemer,
Not that I like to make subjective comments, but the market overall is not acting normal on an intraday basis. It is now almost 2PM and there really has not been any real downturns during the day, except the movement from up 170 points down to 150 points. Also I have noticed that this strong movement up intraday was performed without strong volume as we saw over the past few days, but it is normal volume.
Could one suspect that the big players are really not participating, since they still feel that there will be a strong pull-back down to the 7000 range, although I would suspect that they would now increase the bottom somewhat.
As I indicated in my earlier note the 7600-7700 range will be considered in the overbought range per my normal short-term technicals. That should not be that strange since the market has already rebounded some 600+ points from the lows. Would feel that any pullback will be a normal one with the bottom around 7300-7400 range, although I more incline to say 7400. I am not saying that it will get that low, just that 7400 should be the bottom.
Now subjectively, I would believe that this runup is frustrating many of the big boys since they did not have the chance to get in. The market will pull back sooner or later, but in line with normal technicals. Now, what happens if they accept the fact that they lost their chance and now have no choice but to get in - that may spike the market up substantially more. Just an opinion, which is not supported by my technicals.
For my IRA I bought ATML stock at 27.
Seeya |
