Sunday, July 26, 2009

Wk29: Market Recap

The market internals started and ended the week strong, however midweek showed some divergence as the broader market paused only slightly. We have seen quite the move higher off the lows set back in March 09. The S&P500 is +47% from the March 09 lows, Dow +41%, NASDAQ +55%, and Russell +60%. These moves are incredible and to have the VIX retract nearly 70 points is astonishing. Looking back only a mere 6 months and option premiums were through the roof.
We saw the S&P500 finally break out of the 956 level and once it did prices have not stopped. Nonetheless this 10-day run is due for a pullback. When one does occur, look for the old 956 resistance level to act as new support.

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