Monday, June 1, 2009
Markets Set To Soar, GM Officially Declares Bankruptcy
Markets are shrugging off the General Motors news, which was already baked in, and more interested in the higher income numbers reported this morning. Some how this market will be forced to digest the unemployment numbers that will come from the announcement of GM plant closures.
Day traders are playing nothing but bullish set ups this morning in the SP 500 as the bears are getting ripped, there just is not any sellers going into the open. With the 50% retracement broken over night at 933 the next target looks like 954. The trend is bullish for day traders until a long set up fails.
Stochastics and the RSI are bullish for the SP 500 signaling that sideways to higher prices are possible near term. From a broad perspective, June needs to close above 929.00 or below 875.40 to clear up near term direction in the market.
Monday's pivot point, our line in the sand is 916.25
1st resistance is 930
2nd resistance is 941.75
1st support is 904.50
2nd support is 891
Our weekly pivot point for the SP 500 is 896
The June NASDAQ 100 was higher overnight and trading above the previous reaction high crossing at 1437.75 thereby renewing this week's rally. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.
If June extends this spring's rally, weekly resistance crossing at 1496.25 is the next upside target. Closes below the 20 day moving average crossing at 1395.97 would confirm that a short term top has been posted.
First resistance is the overnight high crossing at 1458.25
Second resistance is weekly resistance crossing at 1496.25
First support is the 20 day moving average crossing at 1395.96
Second support is the reaction low crossing at 1342.75
The June NASDAQ 100 was up 14.25 points. at 1450.25 as of 6:02 AM CST. Overnight action sets the stage for a higher opening by June NASDAQ 100 when the day session begins later this morning.