The Stock Market: Going Up?

Posted by: Ben Levisohn on July 23, 2009

U.S. stock markets rallied today, with the Dow Jones Industrial Average, the Standard & Poors 500 stock Index and the NASDAQ Composite all finishing the day up over 2%. Both the Dow and the S&P broke through important levels of resistance, and the Dow closed above 9,000 for the first time since January. “We hadn’t made a clear break of June highs,” says Ned Davis Research’s Will Geisdorf. “Today was the first day we truly cleared above that June resistance level.”

Technical analysts were elated. For months, they’ve been trying to convince their nervous clients to go all-in on the stock market. The pointed to low downside volume, as well as the lack of strong selling during the consolidation that took place during the past month.

But today’s move confirmed that the current upswing isn’t just a dead-cat bounce but an honest-to-goodness bull market, even if it’s “one of the most unloved and doubted bull markets in history,” says InvesTech Research’s James Stack.

Reader Comments

Fliujniligui

July 23, 2009 11:25 PM

I threw in all I have gradually as it dropped and ended the process at February end. The making back of losses was spectacular, brief and intense. I sold out gave back a part of what I owed, but when I saw market was not crashing, fundamentals improve everywhere journalists do not talk about and that sound companies were still bargain priced, I took back all the assets and reallocated to similar and additional stocks.

Can someone tell me if things are better in China, Canada, Poland, Brazil and even USA now than what they were in September 2008 ? Dow was at 9000 at those 2 periods and from both, throwing money in seems more promising and less impatienting now than in 2008.

Deutsche Bank was fun at 21$. And I still add at 70$. Fair value ? 200
Allied Irish Banks and Bank of Ireland are some risky bets but so good potential on long term. FV ? 20$ National bank of Greece : What recession ?

Richard

July 23, 2009 11:45 PM

So was last years jump, when all fundamentals said that there was trouble on the horizon. The traders will push it up, but sooner or later somebody's going to get run over

Mike

July 24, 2009 1:13 AM

Technical analysis is a joke. You might as well believe in voodoo. The people that move the market aren't buying and selling based on arbitrary technical indicators, but sucker retail investors do. So much for 'breaking resistance' today.

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About

Bloomberg Businessweek’s Ben Steverman focuses on the latest moves in financial markets and emerging trends in stocks, bonds, and funds, always with an eye toward giving readers a better understanding of the sometimes confusing and often chaotic world of money. Standard & Poor’s senior index analyst Howard Silverblatt will also provide his take on companies’ finances and the markets. Voted one of the “Top 100 Finance Blogs” in 2007.

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