The Brave New Bull Market? Jeffrey Cooper Mar 27, 2009 10:05 am |
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Compression high closes and compression low closes after persistent runs. The bulls would love to see a strong weekly close on the high of the week but someone big may pull a chair away before the quarter end music stops: there may be some players looking for a head start out the door in front of G-20 and earnings next week. Yesterday’s close at the extreme of the session and our 830 level may have been climatic for the short term.
Strategy: I would only be short under 827 looking for a move to 805 which should be supportive. Many stocks have reached resistance and are up 14 days or so in a straight line and a small round of profit taking could turn into something more in front of the weekend. I would turn defensive if unusual weakness develops and persists after the first half hour or so.
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