Monday, March 22, 2010

Midday Briefing for March 22nd: Risk Appetite Remains

Just as we sharply rejected weakness on 3/15, sending stocks higher, we're seeing a similar move today. After opening lower, we have sharply rejected price below the 1150 area and now have traded back into last week's range. As long as we continue to see pullbacks at successively higher prices, this bull market is intact.

Note that small cap stocks have regained their leadership today and the NQ futures are trading at bull market highs. Crude oil has also turned positive on the day. This is an indication that risk appetite remains alive in the markets.