Tuesday, February 24, 2009

Technical Picture - Oversold Bounce

An impressive technical bounce for the stock market, reversing the previous day's breakdown to post strong broad based gains on above average volume. This technical hold, the deeply over extended posture, relative strength yesterday in the key Financial sector (XLF did not breakdown) and again today (XLF +12%) along with the ability of the S&P to remain above Monday's trough despite the weakest Consumer Confidence data on record (25.0 vs. consensus of 35.0) helped to underpin the action. Also providing leadership were: Coal +11%, Paper +11%, REITs, Clean Energy/Solar +8%, Housing XHB +7%, Oil Service +6%, and Steel +6%, . Little on the defensive other than Gold/Silver XAU-7% (refer to chart below).

Looking forward, a 62% retracement of the last leg down, would fill last week's gap.

FSLR trading much lower after hours on weak earnings.




2 comments:

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