A big up session after GDP showed that the US economy grew for the first time in 7-months. This seemed to be the antidote for the recent pessimism. The market rallied from the get go and never paused till the close. The strength is certainly welcome, but it does not yet signal a new trend higher as yet. We need to keep advancing and we need to see it occur on high volume. A low volume advance here is not positive as it would point to lack of buyer demand. We’ll also keep a watch on the Dow Jones Transports and Industrials. That divergence has confirmed a bearish stance and will take some time to unwind. As such we’ll be standing on the sidelines for a week or so until we gain some semblance of what the next trend will offer.
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Fri, Oct 30, 2009
US Commentary