Friday, May 15, 2009
Most people say that stock market has reached bottom. Although it has seen a strong rally since the March 9th lows, it is still in an overall bear market trend. So we can forecast that the market, after a small decline (I hope without panic selling), can move higher. Therefore, the Standard & Poor's 500 Index, which consists of 500 stocks chosen for market size, liquidity, and industry group representation, will slightly try to incease its volume surge. The Standard & Poor's 500 resistence level of 935 - 945 would may mean a rise at 1045.
We can all have the same information about the world stock markets, but people act differently on the same information. Anyhow, it isn't easy to distinguish something that is signaling a real breakout from a new trend.