Last week was a pretty nice week for the Bulls. The S&P 500 held the 880 support level -- closed on Friday having held onto the gains of the previous four sessions. On the whole, earnings reports were fine. The tech sector that we predicted would be a leader indeed was a leader -- and, of course, many sectors enjoyed nice gains. Resource stocks finally escaped from No Mans Land, primarily because of China. And at the bear's pow wow, the bears felt sufficient fear that they decided to jump in and chase prices higher.
But here we are -- another Monday, another start to a new week. There have been some encouraging signs recently, including some positive signs in the financial sector. Sentiment now seems improved. And a whole lot of charts are technically improved as well, although very few are what we would term screaming buys. Many actually went from being oversold into now overbought territory. So the question is -- will the market roll over, or will the Bulls make a push higher? Will the S&P move back up to the high of the year? Until we feel more comfortable about the answers, our moves will remain tiny.
But it does seem that the winds are favoring the Bulls. And with the already reported decent earnings reports, those Bears may very well be too frightened to get too close to the betting-short bonfire, not wanting to get burned again.
And today there is news that CIT may get a chance to restructure its debt outsie of bankruptcy.
After the gains of last week, it seems that it would be nice simply to see the market rest for a bit, digest gains, develop some nice buying patterns and then move higher again.
We have often mentioned keeping an eye on gold -- watching for further weakness in the $USD, and looking to add to gold stocks when the prices are right. No changes there. Some of the chemical types have some decent set-ups.
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