{+++}Forget 1120 support on the S&P, the real line in the sand is 1130. It has tested this number on numerous occasions the last couple of weeks and tested it three times today–and held beautifully. The XLF also has shown great recuperative prowess and has rallied back just when you think it is about to cave in, just look at the chart yesterday and today.
XLF is the key to the success of a continued rally for this market, if it rolls over, so will the market. I’m really long here, so I too am rooting for one last blast higher. We had a warning shot on Friday and again today, but we tried a rally into the close. We need to respect and absorb these warning signs carefully, as it is important to our trading health.
VISN stopped out for about a .4g cent loss (a China play and that market is under pressure). China has been using the “tightening” word and that is sending mini shocks through their market and ours as well. The Brown victory had little effect on things today because of this in my opinion. The political victory for Brown could be good for the market as the bank financial tax could take a back seat, that will be good for XLF and good for the market.
JEF had a great break out day today and the rest of our names were down to mixed, IBM got the smile smacked off its face but we sold 1/3 for about +4 points the other day, I still love it a s a buy under $130.
I’m adding AXP as a long tonight.
