Wednesday, February 24, 2010

SP500 Bounces Above Key Technical Levels

As we wrote yesterday on the Consumer Confidence report, the market drop was as technical as it was related to the supposed lack of confidence. We mentioned that the 20/250EMAs were very crucial junctures and it's not surprising to see the market drop back down to test the support before continuing the rebound.

Today, we saw a solid bounce back above the support. Now any move about the 1110 -1112 range will likely lead to a retest of the 1150 highs and possibly a move to the pre Lehman levels of 1200-1250.

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