The stock market has been locked in a bear market all year, with the S&P 500 and Nasdaq both trading below their 200-day moving averages. In August they rallied up to that level and resistance held again. The market then dipped hard for over two weeks and then rallied in the last three days of last week. That move up has gotten people excited about the market again. The question to ask is whether this market rally is for real or is it just another bull trap?
It’s also important to look ahead at the next shoe to drop and the WSJ had an important article this week about the coming corporate credit crunch conditions.
I send out a free morning stock market traders digest before the opening bell.
To get it just click here.
-Mike
