I assume that you asked this question because there has to be a buyer and a seller to complete transaction, and why would the price go up or down. I will give a simple example: There are two cars in lot, both selling for $5000.00 owner must sell that day. Three outcomes to set the selling price. #1 Along comes 1 buyer, he can get both cars for $3000.00 each. #2 Along comes 2 buyers, both buy for $5000.00 each #3 Along comes 3 buyers, only 2 can buy for $7,000.00 each. In all transactions 2 cars were sold but the price was determined by the number of buyers.
mkt was way oversold and it couldn't break previous lows set last Thurs -- so what else is new? .. when almost everyone turns negative this is what happens. When you hear 1300-1400 target on the sp500, it'll be time to short it. 2 days ago SP500 came up to 1190 and today it closed 1195 -- no big deal, i think -- still resistance above 1204-1206 on the cash however, it seems this might go toward testing 1222-1227ish before a turn. markets always keep me humble.
I actually have a very vulgar apt description for this kind of rally, but sadly , this is a family board.
Actually quite self explanatory 1) The violent move down in the morning signified extreme "caution" Move downs that hurry in the morning usually end up somewhere up in the afternoon. 2) No lower Actions during the afternoon, rally how much? nobody knows, 3) Tomorrow is an important day, Today is a testing day. Tomorrow I'll be waiting to pounce. sectors I'm interested in are COPPER , ENERGY , RETAIL 4) The previous posts about too much bears is correct as well.
The dow is always attracted to is fair Values...revovles around them...so plan well and GL KaL These are the daily weekly and Monthly Date Fair Value 10/18/2005 0:00 10279.73222 11/1/2005 9:00 10363.72829 11/15/2005 18:00 10448.43699 11/30/2005 3:00 10484.79271 Date Fair Value 10/10/2005 0:00 10488.66835 12/19/2005 0:00 10514.0704 2/27/2006 0:00 10356.58396 5/8/2006 0:00 10074.04501 Date Fair Value 9/1/2005 0:00 10564.93198 7/2/2006 9:00 10582.99165 5/2/2007 18:00 10400.08379 3/2/2008 3:00 10305.97702