Why this Rally is Not Real…..Not
Friday the S&P broke through and settled above the important 840 level. This morning CNBC is continuing the theme that the time for this rally is not yet, things are still bad….and there you have the basis for this rally…. the fat cats are not part of it and don’t think it is real. And they are right, things are still bad out there.
This week we should see a test of the new support level S&P 840 and should see it penetrated a bit, maybe 837 or 832. Where the market goes from here will be more interesting, 875 is the most watched area by the chartists but 915 is a more realistic target to us.
The EMA ETF Nav on Fridays close was 1093.
7:49 AM CDT