The S&P touched 875 Friday. 875.63 to be exact. That's the key resistance everyone has been talking about, from the most seasoned traders to the most full of it analysts all the way down to first time chart readers.
With all of the negative sentiment hanging around this level, we have to wonder if maybe the few contrarians will be right and the market will take off from here. If that is the case it will be truly astounding with everything that is happening to this economy.
With the Chinese forecasting a better and faster than expected recovery anything is possible. The big question is how reliable is are the Chinses to give out accurate information. Remember Tiananmen Square? Also the Obama administration has allegedly promised not to let any more bubbles or anything else bad to ever happen again. http://bit.ly/bql2X
But of course that means more regulation, a lot more.
So with all this good news coming out, who knows. Once again we'll just have to wait and see how the market decides to digest it all.
In the meantime you can give your opinion on the Government nationalizing banks at Traders Blog and have a chance to win two free months of Market Club and two hardback books on valuation, risk and investment. Click on the traders blog link at the top of this page.
