Drifting Higher
22nd March 2010
Last week the financial markets continued their slow march forward into new 52 week highs. The problem with this breakout was that it was not accompanied with a lot of volume. The SP 500 should go back and test support at the 1150 level, the DJIA at the 10,700 level, and the MNX at the 190 level.
When this happens, use it as an opportunity to place some new trades. If support holds, look to use bullish spreads to reduce your risk and improve your reward to risk ratio. If it does not hold, it will be a good opportunity for bearish credit spreads.
JD
