The Insightful Trader

Primed for a Bounce

by on Feb.23, 2009, under Market Commentary

After an extremely ugly day on Thursday and a big whoosh down Friday morning on worries what was going to happen to the financials the market staged a good rebound Friday afternoon to only close down about 1% for most the major indexes. The one exception was the NAZ which was just slightly down. The end result was a bullish candlspx-22feb09e formation on most the indexes.

 

In the 15min chart below, we see that we broke back above the upper line of a bullish falling wedge pattern. Of course you can see that we conviently bounced just above the prior low in Nov. I’m not looking for too much here as we now have a lot of resistance in the low 800 level and then further resistance at the 830ish level on the downside of the up trend line. So technically we could be set up for some further upside. But as always the case it seems lately, what comes out of Washington will probably have a pronounced effect one way or the other this week.

spx-15min-22feb09

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