Not A Bad Day

We went lower in the morning,rallied mid day retested in the afternoon and came on strong into the close. Not a bad day technically at all for the indices. The retest held the Fibonachi retracements on the Nazz and S&P. We do have an opportunity to extend the rally here, but we have all been to the alter before with this market. Overhead resistance to contend with is 1850-1860 on the NDX and 1365-70 on the S &P. Technicals on the New York were 25 to 7 positive– on the Nazz it was less than 2 to 1. Up down vol. on the NY. was 7 to 1 positive and on the Nazz it was 7 to 3 positive-lighter vol. on both. Sales of new homes fell in Dec. fell 4.7 % and new home sales in in 2007 fell 26.4% compared to 2006. But we are not in a recession? LOL!!. Did anyone watch the housing segment/housing crash segment on 60 minutes last night? There are whole subdivisions of new homes turning into ghost towns that will take years to work off. Be careful of bear market rallies as they are fast and furious and they are fast,vicious and unforgiving on the downside. Back at it tomorrow.

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