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Tuesday, December 6, 2011

Market Thought... still at resistance

Not much has changed from my 'obvious technical resistance' post.  Individual names are relatively overbought, and at or near resistance levels, along with the SP500.

The only new bearish development today was that the VIX was up while the Market was up. (That is usually followed by a market sell off.)

Coincidentally enough, the reason for the VIX positive was due to the EU downgrades. As I constantly  mentioned, that was a threat, but now its just a 'hick-up' threat.

Just a note: If this morning's market strength was predicated on a leak about a 1Trillion Euro ECB package, then the action means little to me.  If it was not, then it means the under-invested managers want in. That is bullish.  If we are lucky enough to see the SP500 approach the 1230 level, I will be looking to buy SU, POT, IBM, and maybe more AAPL.

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