- The market internals (advancing stocks vs. declining stocks, up volume and down volume, etc.) were better than the averages. Volume was about 300 million less than yesterday.
- As noted earlier, we flirted with S&P 822 but bounced off with news of stimulus approval. Lest you feel all this talk of S&P price points is mumbo-jumbo watch what happens should we close below that. So many look at these stats that it becomes a self-fulfilling prophecy.
- Especially like the way finance and banks closed. Goldman Sachs closed almost on its high.
- Want money for a start-up? Try Mark Cuban. He has outlined requirements for any new business he finances. Blog Maverick – www.blogmaverick.com _+
- Want to eliminate the brochures in your mailbox? I tried this and it really, really works. Just gather up the brochures and write in info. Presto! They are gone. Catalog Choice – Eliminate unwanted catalogs you receive in the mail
- From Michael Steinhardt, one of the earliest and best hedge fund managers with some sobering words on market retests:
Retests
Since November, I’ve heard quite a few market technicians (or at least people pretending to be experts on technical analysis) suggest that multiple retests of the 820 (or 805 if that is what you prefer) support level on the S&P 500 means that it is more likely that these levels will hold.
I disagree with the theory that many retests at a given level ensure that it is a sturdy bottom. I’ve criticized talk about triple bottoms in the past when the S&P was at 1400 and don’t feel any different now that we have lost 40%.
I agree that successful retests are important and yet, so are failures. If you have 5 successful retests over 4 months that does not mean that the sixth retest will not fail.
It only takes one failure of a “strong” support level to wipe out your belief in all the times it held.
Regardless of whether we bounce off 820 again, what have all the “successful” retests given you?
Until a support level holds and a resistance level is broken the next time we rally, don’t get too optimistic.
