Stiff Upper Lip
Don't be a knit picker!
The fun and games begins anew as traders strap themselves in for today's ride. The obvious levels to monitor out of the gate are S&P 986 and BKX 874 (50-day moving averages). If the bulls are to make a stand, that's the foothold they'll need to establish. If (big if) they power through those zones, S&P 1010 (first breakout), S&P 1020 (THE breakout) and NDX 1300ish (congestion) are the final frontier of resistance.
What do I think? Yesterday's rally, while spirited, had lousy breadth and that'll be one of my key reads today. While it's true that this may be a healthy basing, there are some internal affairs that need to be resolved. Watch the financials, internets, retail and cyclicals as daily reads. And please keep an eye on the debt situation that Brian has been discussing--it has equity implications.
We've got the Cisco Kid tonight (CSCO:NASD) and that should shape the tape as we edge through the day. The bar of expectation is set rather high in the name but you know Chambo--if there's a silver needle in the haystack, he'll knit a good story.
I mentioned recently that I felt rallies are made to be sold and I'm still of that mindset. If the Minx musters the moxie to push through the upper band tag, Boo will have to take a fresh look. Until then, he's lickin' his chops.
Fare ye well.
Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at firstname.lastname@example.org.
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