By InTheMoneyStocks.com on February 8th, 2010 11:40am Eastern Time
The markets are slowly inching higher today on the back of Friday's massive late day reversal. After four weeks to the downside, it appears as if the markets put in a short term bottom Friday when the SPDR S&P 500 ETF (NYSE:SPY) hit a low of $104.58. The reversal on the markets coincided with huge volume which also tells of a possible bottom capitulation type move. The dollar hit major resistance and in turn oil flushed out as the United States Oil Fund LP (ETF) (NYSE:USO). With the dollar falling and oil and gold rising, Friday turned out to be a beautiful reversal. A bottoming tail is now visible on the daily chart. Commodity stocks like U.S Steel Corp. (NYSE:X) hit major levels (X hit the 200ma on the daily).
While earnings look to be getting thin this week, major companies report still include The Walt Disney Company (NYSE:DIS) and PepsiCo, Inc. (NYSE:PEP). After the jobs report on Friday, economic news may seem lighter. However, watch the Initial Claims and Retail Sales numbers on Thursday. Those will most likely move the markets.
Generally, on a technical basis, look for the markets to be choppy to higher short term following the bottoming tail and reversal on Friday. Commodities should lead the way as the dollar falls back slightly off of the key resistance level it nailed on Friday. Keep watch of further worry about sovereign debt and chatter about the global econo
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