Monday, March 1, 2010
Monday, March 1st Review
Today was the first day of a new trading month, which is historically bullish. Couple that with it being a Mutual Fund Monday and well you have a serious potential for some bullish action. Market opened with an advance - decline line around 3to 4/1 in favor of the bulls and the tick stayed in positive territory for most of the first 30 minutes of trading, which is very bullish.
Top chart shows a 50% retracement from Friday's lows to Globex highs Sunday Night/this morning(#1 on the top chart). They bought that level, even front running it by a couple ticks, and it was up from there. A rather uneventful day after the am session however, our -23% range extension target calls the high of the day to the tick once again!
Volume Point of Control (bottom chart) comes in at 1114's. Midpoint of today's range is 1110's, that will be my line in the sand, bullish above/bearish below for tomorrow.
I believe the market is headed for 1129's first before any significant pullback reaction. if/when that pullback reaction occurs I expect the market to trade up to 1149's again by at least the end of the month of March, of course on its path to eventually trading 1230's by summer time!