Tuesday, March 09, 2010

Stock Market Commentary: Selling into the Close

It was looking very good for bulls until about 2:30pm when profit takers swooped in as the usual market worries kept optimism tamed. The watch areas for bulls are the breakout gaps; one from last Friday and a second from last Monday.

Large Caps suffered the worst of the selling which was odd given their under-performance against tech and small caps.

Bulls will probably be happy to see some easing in Small Caps; the current angle of ascent is not sustainable.

Tech will probably take their lead from the SOX which closed lower and is very close to a test of its 50-day MA.

So for Wednesday look for some push back towards last week's gaps.

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