Despite the late afternoon weakness yesterday's rally did create a few positives for the market. The daily candlestick patterns for the: Dow, and S&P (Doji) and Nasdaq Composite (bullish engulfing) all showed some improvement. Taken together with yet another rise in the Index of Leading Economic Indicators and an increase in the Index of Coincident Indicators, they offer tangible evidence that the economy is ok. That may not be enough to save the tech stocks, but it should allow the broad market to continue the rally that existed before May first. These one-day signals may be enough to encourage the shorts to cover, but it's still much too early for any investor to go long. So far we have only another small rally in a powerful downtrend. A 4% up-day (for the Dow) would be the most positive sign that the market has indeed turned. Today: Consumer sentiment is weakening so no surprise is likely in today's news. The bulls need encouragement in the form of some upside progress. Watch resistance levels carefully. Support: Dow 9,375, S&P 971, Nasdaq 1,414 Resistance: Dow 9,080, S&P 1,002, Nasdaq 1,476
MCD - Buy (IMO) Target: $30.50 area Stop: $28.45 Always observe stops to minimize losses A small top formation appears to be halted by strong support from this Spring.
This stock is back on my watch list. If breaks $2.60 I'm looking to accumalate a large position for the long term. It may very well be a good day trade as well.