Monday, August 3, 2009

08.03.09 - Strong Start to New Month

We remain in the bullish end/beginning of month period and the SPX has celebrated by punching through 1,000. At the mid-day, although we are seeing some resistance at SPY R2 (say $100.10) -- Cumulative Tick, Up Volume and the Advance-Decline line all looking quite strong.

The only cautions are that we are short-term overbought (again), and on any bad news (if any ever arises), money managers may feel less nervous about upside participation this early in the month. With all those parentheticals, reads like a prescription to buy-and-hold, doesn't it? By the way, how many gaps below does this make?

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