By InTheMoneyStocks.com on January 25th, 2010 11:44am Eastern Time
Last week was brutal for the markets. After nearly a 600 point DOW sell off, the markets gapped higher this morning. Talk that Federal Reserve Head Ben Bernanke would be confirmed into a second term later this week helped ease Wall Streets fears. In addition, there was a technically oversold market with many key stocks coming into super support these were highlighted on the Hot Charts & Alerts and Pro Trader Watch List. A gap up was somewhat of a no brainer based on buyers stepping up. Remember, every sell off has been a buying opportunity. Investors will use that until it is proven over and over to not work. Following the gapup in the markets today, we got Existing Home Sales. Existing Home Sales dropped by 16.5%. That is a very sharp decline but not surprising following the first time home buyer tax credit, as many utilized that into the end of 2009. The markets since the open have traded sideways to lower. This has continued for the first two hours of the market. Much of the early gains have vanished but technically speaking, there is still an in spirit of bull flag in play. Watch this pattern. Should a close of a 10 minute candle occur below the gap fill level, this will be negated and we could dump out. The odds of that happening though are minimal.
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