Make Or Break Time For Mr. Market

Discussion in 'Trading' started by stonedinvestor, Mar 21, 2007.

  1. The broad market followed through on Monday's gains yesterday, causing the major indices to test key resistance of their 20-day moving averages. After opening flat, stocks trended higher throughout the morning, pulled back slightly in the afternoon, then crawled back towards their highs in the final hour. Both the S&P 500 and Nasdaq Composite gained 0.6%, while the Dow Jones Industrial Average rallied 0.5%. The small-cap Russell 2000 and S&P Midcap 400 indices were each higher by 0.8%. Can you guess what was once again missing from yesterday's rally? Disappointing turnover once again failed to confirm the gains. Most likely, we will begin to see the return of institutional trading activity after this afternoon's Fed announcement on interest rates. However, the big question is whether they will join the party and run stocks higher or sell into the strength of the short-term bounce.

    If the " smart " money decides they were wrong to sell in the pullback we will have a royal UP week.
    If insitution selling comes back into the market...

    I guess the big question today is will Bernanke and Co. hint at concerns about the economy and the impact of the breakdown on subprime lending? Or will they maintain an outwardly vigilant posture on inflation?
  2. I just called for air support. 'Uncle Ben' gives an ETA of 14:15 est.

  3. blast19