A Strong Finish To A Tough Week Makes The Outlook For Stocks Stronger
The market craziness continued today, and at the end of the day, we finished the week where we started. The good news is that S&P 500 didn’t go below 2,691 as feared. The bad news is that we ended where we began the week, closing in that zone of 2,740 to 2,750. But today’s rally was convincing enough to me, to make me believe that the pull-back of this past week is likely over, and the market is likely to move higher from here.
The stock market gave us an extremely strong close through the end of the day. Was my call for the market going lower this week right or wrong? The critics can be the judge of that, and I’m sure they will. I think overall directionally, I got it right, and we did come within 8 points of testing 2,691. I’m a harsh critic, and that makes me feel more wrong than right.
Microsoft appears to have broken out today and rose over the right/wrong level of $93.50.
Netflix hasn’t broken out yet, nor has Amazon. Both closed right at the there respective resistance level. It will give us something to think about over the weekend.
Anyway, now that the market seems to be getting its groove back, I’m going to try to return to the standard format, with more of a focus on the broader market and exciting stories, then just focusing on leadership in the marketplace. I think I have been able to you demonstrate since January 29, that watching leadership in the marketplace is extremely important.
Whether you have agreed or disagreed with my outlook over the past three weeks, I hope you have at least learned how essential it is to watch the entire market complex and not just one part of it.
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