Wednesday, 17 October 2012

Can S&P 500 Break Double Peak Resistance?

After a pretty dismal last week, I had expected the market to recover and bounce for a couple of days.  I didn't anticipate the strength of the bounce though, taking us up almost 2% in just two days.  Looks like there's more life in the bull side of the market than I anticipated.

Looking at the technicals, there's a very strong double peak resistance at ~1460-1465, only 0.5% or so away.  While the indicators had dropped a bit following last week's rout, they never got to the strongly oversold position, bouncing right off its 50 DMA and are going to retest its post financial crisis high.

Tomorrow will be interesting.  With Intel and IBM's earnings "disappointment," there's a strong question of tomorrow's tone with both stocks dropping 3.4% in aftermarket trading.

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