US Overall Market Pre-market Review

12Nov09 - Pre-Market Review

I was looking for clues on any possible exhaustion of this rally...who isn't, right? And decided to check out almost all of the industry sectors' ETFs. This means, i looked at Agri, Industrial, Transport, Telecom, Financials, Biotech/Healthcare, Retail, Precious Metals, Oil&Gas, Construction, Consumer, Builders, Energy, Alternate Energy, Technology, etc...

Technically, a few of them did look like they rolled over about 2 weeks ago. But along with the rise in main indexes over the last 8 sessions, most of these charts now look much stronger. By that, I mean, most have either surfaced above the MA50 or made new year highs. Where a few once cut below the head&shoulder neckline, they now re-emerged above it. It was difficult to locate any particular ETF that gave an assured negative bias.

Among the major indexes, brief technical readings are :

a) $INDU - new year high formed last night
b) $SPX - continues to challenge most recent year high
c) $COMPQ - near year high
d) $RUT - hit MA50 resistance as of last night (this is thus the only party pooper)

MACD - all indexes show increased momentum as prices increase

Obviously, this does not mean that the rally will continue without impediments. There are clear and near resistances for all them. It merely highlights that the internals across the board, technically at least, are supportive of the rally of this last 8 days.

So, then, how should we play this market? Your thoughts are most welcome....