Commodities continue to lead the way in this market rally and energy stocks have been helping keep the market stable while big cap tech stocks have pulled back to support levels. It will be key to see if these big cap stocks can break out of their bullish continuation patterns and then continue back to the upside. Banks are playing catch up, but they are still looking weak on the tape. We have GS that is trying to break above the 200ma on the daily chart and once that happens we could see more confidence build in the financial sector. We would also need to see the XLF get above $15 per share and hold above that level. We have key earnings to watch next week and any surprise at these levels could definitely cause some profit taking, but until we get more clues that the market rally is over, then we must continue to play the upside.
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