Read The Stock Market Correctly And Profit
The stock market is holding a majority of the gains. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $115.32, +3.03 (+2.70%). The key to this market is whether or not the gains can be held into the close. Just yesterday, the markets sold sharply in the final ninety minutes of trading. This is on the mind of every trader and will be a major test.
The reason for the late day sell yesterday was due to European fears. Traders did not want to hold any positions into the close of trading due to continued rumors of a bank collapse and a possible French credit rating downgrade. If the markets hold their gains today, more upside is likely tomorrow and next week. In other words, today is the day to make or break the markets.
It is important to remember, a technical bottom was put in two days ago when the SPY hit the $110.27 level. Even with the 500 point flush on the Dow Jones Industrial Average yesterday, that low was never taken out. For technical traders, yesterday was a buying opportunity. For the other 99% of the world, it was a panic sell day. Obviously the non emotional technical traders are winning this battle with massive profits today.
This is a broad based rally but the closing prints on the market are the one true key to whether or not it continues tomorrow.