Earnings and Resistance

The bulls have got the market churning again even though a week earlier everything was completely different.  A bottom call from Doug Kass and some “value buying” later we are back to where we started with our recent short.  Earnings starting this week will be good I’m sure,  but whats important is the market reaction.  Technically there has been a lot of damage done.  This results in a lot of overhead resistance that will make for a volatile push upwards.

The chart below shows the SPY year to date with the 25, 50, and 200 day moving averages.  Also on the right side I put in the overhead resistance levels at the current time.  As the market moves and the moving averages move the resistance levels change.

7-11-10 Market Resistance

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2 Responses to “Earnings and Resistance”

  1. The funny part about the Doug Kass calling of a bottom was that the next day during the rally he tweeted that he was taking profits on the SPY he bought.

    But no news channel cheerleaders were talking about that.

  2. Well it looks like the old antics are intact. Alcoa has reported and is up after hours with a beat of its recently revised down earnings.

    30 days ago the est was for .17 7 days ago the est was for .14 Now the est is for .12 they came in at .13

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