Stocks Bounce As New Week Begins

Byinfo@50park.com

Monday, May 09, 2011
Stock Market Commentary:

Stocks and a host of commodities rallied after last week’s week-long “Flash Crash.” From our vantage point, the market rally remains under pressure due to the lackluster action in the major averages and so many leading stocks.

Stocks Rally As Jobs Related Bounce Continues

Stocks and a host of commodities rallied on the first day of the week, rebounding from last week’s very sharp sell off. It was encouraging to see a slew of leading stocks hold up rather well during lat week’s sell off ranging from: AAPL, NFLX, BIDU, PCLN, GMCR, MCP, & AMZN. 

Market Outlook- Rally Under Pressure

From our point of view, the market rally is under pressure which suggests caution is paramount at this stage.  Looking forward, the next level of support for the major averages are their respective 50 DMA lines. The rally remains in tact as long as support holds. If you are looking for specific help navigating this market, please contact us for more information.

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    Market Outlook- Market In A Correction:
    From our point of view, the market is back in a correction now that all the major averages closed below their respective 50 DMA lines and important upward trendlines. Since the beginning of May, we have urged our clients and readers to be extremely cautious as the major averages and a host of commodities began selling off.
    For those of you that are interested, the S&P 500 hit a new 2011 high on May 2, 2011. Two days later, on Wednesday, May 4, 2011, we turned cautious and said “The Rally Was Under Pressure” (read here). Then on Monday, 5.23.11, we changed our outlook to “Market In A Correction” (read here). On Monday June 6, 2011 we pointed out that the S&P 500 violated its 9-month upward trendline (read here) and reiterated our cautious stance. We have received a lot of “thank you” emails for being “spot on” in our cautious approach. We are humbled by your presence and very thankful for your continued support. Looking forward, the next level of resistance for the major averages is their respective 50 DMA lines then their 2011 highs. The next level of support is their longer term 200 DMA lines. If you are looking for specific help navigating this market, please contact us for more information.
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