Reversal Rally Needs More Steam
John Palatine | October 29, 2009 | View Comments
The aggressive bounce definitely came to our surprise with all major indices up around 2% on relatively lighter volume. We bounced off the 50 SMA and the uptrend on the daily time frame (see chart below) so this fact alone might be a motivation to get some traders and investors bullish. I have to reassess my bias, but not that fast.
We are still below the 107.50 resistance. Tomorrow’s session has to prove if bulls really want to go higher with a follow-through. Two possible scenarios: (1) we have another strong up day, breaking this resistance along the way, or (2) we reverse around there and head lower to break this trend for much lower prices at last.
Category: Stock Market