Zacks:Down200MA1256.8- 6/17/11

oldpigwang

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Dear Subscribers,

Pre-market futures were pointing to more losses on Thursday morning...
And then weekly Jobless Claims came out a notch closer to 400K and the market opened breakeven...
And then Philly Fed survey came out as ugly as the Empire State did Wednesday...yet amazingly the market pressed higher...
And then in the mid-afternoon it felt like a mini flash crash where all risky stocks were taken to the cleaners...
And then we ended the day with Dow and S&P modestly in positive territory with Nasdaq in the red.

This kind of activity means that bulls and bears are once again wrestling for the upper hand. The bears have clearly been in control since May 1st. But now with stocks trading well off the recent highs, the bulls are trying to reassert themselves.

My guess is that the bulls will take control after the next push down to the 200 day moving average at 1256.80. That is very close at hand and will likely create a nice relief rally. The staying power of that rally depends on the future flow of economic data. More coming in like the Philly or Empire State and we will see the underside of the 200 day. More of them showing modest growth or better and we should head markedly higher.

oldpigwang

Also, CNBC reporter has been yelling for 1257  for days.
I will buy at 1260 and lower.