Paper Ceiling
26th February 2008
Good news from IBM outweighed bearish economic news as the DJIA flew through short term resistance at 12,600 like it was made of paper. The same can be said about the S&P 500 and the 1375 level. The next stop for the DJIA is 12,800 and the S&P 500 is 1400. What will make these levels more difficult to break through is the fact that the 50 day MA is going to multiply the resistance these markets find this time around.
While the bulls have had the upper hand over the last two weeks, we will soon find out if this was a bounce or signals a reversal. We are still cautious.
- JD