3/24 S&P levels

We always say it is not the point move that matters but rather the sponsorship behind the move that’s most important. That said today’s market move was impressive because internals were stellar behind the scenes of yesterday’s advance. This is the second time in the last few weeks that both the up to down volume and the advance/decline intraday ratios simultaneously both scored very bullish readings. When the two of these metrics are both bullish at the same time it raises the odds that the buying is real and sustainable and not just short covering. That said we do think these bullish internal ratios suggest the market can keep move higher over time, however it won’t go straight up. As seen in the attached PDF the S&P 500 has now run back up into likely short-term resistance near the 823 to the 855 level.

Given there are still a lot of longer-term macroeconomic issues, tactical trading strategies, such as selling lower cost basis purchases made at lower levels over the last several weeks or placing tight trailing stops on profitable positions may make the most prudent strategy as opposed to not having any active sell discipline....



posted by Peter Greene