Monday, June 8, 2009
That pesky 950 level
950 has been a pretty significant level over the last 10 years. It halted the four year cycle low in 98. It acted as support as the market sold off after the 911 terrorist attacks. It then acted as resistance three times during the bottoming process in 02.
It also acted as resistance during the last counter trend rally in Jan. On Friday it also halted the market even after the fairly bullish employment report.
Markets don't top on bad news, they top when good news can't push them higher. Add in the dollar probably making a major bottom and the important 950 resistance zone and I think the bears now have the best chance to regain control of the market.
More in the weekend report.