Market Set For A Sharp Rally
Back in early march I blogged about how the US stock market narrowly avoided a bear market because the S&P 500 never closed below 1252, which is the critical twenty percent retracement that defines a bear market. Currently, the S&P 500 is at 1354; a solid hundred points or eight percent above 1252 even after the recent pullback in June.
However, the charts are indicating a sharp rebound in the major indexes. One of my favorite charts is the five year DJIA which shows excellent support in the 12,000 level. Since 2006 the Dow has rebounded at least a thousand points after touching 12,000, and I wouldn’t be surprised if it happened again.
So what should you buy to capitalize on this rally? I recommend the same stuff as I have been recommending on iamned.com for the past five months such as EWZ, MOS, POT, V, MA, GOOG, RIMM, AAPL, FSLR, and BIDU.
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Pingback from iamned.com Blog » Still Not a Bear Market
Time June 22, 2008 at 8:10 pm
[...] as I wrote last week there is still tons of support in the 12,000 range for the Dow. Although it broke 12,000 the support still [...]