The folks at Chart of the Day have done it again, with a fascinating big-picture look which focuses this time on stock market corporate earnings. There's been a huge rebound since the precipitous drop! Either it's a simple reaction bounce that will weaken out soon, or a bullish increase that will lead to new highs. But there's a problem - what's the real likelihood of actual earnings coming in to support new highs in stock index prices? We nirmally focus on technicals rather than fundamentals, so I won't try too much speculation. What I really suspect is that the recent months' stock index weakness presages some weakness in earnings. Then the big question is whether we move onward in basic bull market mode, or do cycles call for more protracted weakness?
It seems prudent to be alert for the market respecting important support levels. That's why I'll be watching $SPX 1060 very closely! Meantime let's see what they're saying at http://www.chartoftheday.com/20100716.htm?T
It seems prudent to be alert for the market respecting important support levels. That's why I'll be watching $SPX 1060 very closely! Meantime let's see what they're saying at http://www.chartoftheday.com/20100716.htm?T
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