Monday, March 24, 2008

Quick Stock Market Update

Today's market is notable thus far in that we're seeing solid buying sentiment (NYSE TICK) and very positive money flows accompanying a multi-week upside breakout in price (see chart above). The context for this was set when we made the new bear market price lows last week, with significantly fewer NYSE common stocks making fresh 52-week lows than in January.

We need to stay above the breakout line level to sustain the intermediate-term uptrend. Given that, the next very important test of resistance would be the February price highs.