Since bottoming in earning March — when it appeared the financial crater had no floor — the stock market has rallied smartly. But now major indexes are running into significant chart resistance that could test the mettle of the recovery.
Stocks are trying to take out the 61.8% retracement of their 2009 sell off, a key level for technicians. The rally was supported by glimmers of hope that the worst may be over. But if stocks fail now, the March/April rally could be seen as just a dead-cat bounce in a bear market.
Better news about the housing and banking industries help buoy stocks last week, optimism that doesn't extend to the beleaguered U.S. auto industry, whose likely bankruptcy will provide the market's next big fundamental hurdle.
To read Bryce Knorrs complete weekly financial review, click HERE.
Powered by iNet Solutions Group ©2011 All Rights Reserved.