Thursday, January 07, 2010

Stock Market Commentary: Consolidation Day 3

Attempts to generate a move (down) was quickly rebuffed and the day finished much were it started for all major indices. The Dow was able to make a new closing high for the rally:


As was the Russell 2000


Small Caps look ready to push higher - a potential long side play? Stops on a loss of Thursday's lows or break of 20-day MA depending on risk preference.

The real change for the week is what is looking to be a confirmed breakdown of 4-year rising support in the weekly VIX chart; this would favor a continuation of bullish conditions, even when the next significant down phase occurs.


While the weather continues to freeze this rally hasn't lost any of its heat.


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