Tuesday, March 10, 2009

Market Not Out Of The Woods Yet, But Some Positives

One day does not make a trend and negative factors continue to impact the market in spite of the strong advance today. Today's up volume is lower than past large up days in the S&P 500 Index. This could be a sign that the buying strength was due in large part to short covering.

(click to enlarge)

S&P 500 Index chart March 10, 2009We are now seeing some positives noted in prior posts that could provide a better tone for companies and investors:
Beyond my concerns for fundamental aspects of the economy (the inventory to sales ratio continues to move higher), I still believe we may yet see a capitulation trading day.

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