Market Holds Up On First Day

Wednesday, March 11, 2009

Fundamental Take:
Stocks held onto yesterday's gains closing up a mere 3 points for the day. JP Morgan's CEO, Jamie Dimon, appearing on CNBC today followed Citigroup's announcement of profitability in 2009 with an equivalent revelation. JPM was also profitable in January and February of 2009. This interview, conducted around 2:30, turned the market around rallying stocks from losses to gains. Last night, analysts from Goldman Sachs reported their belief that JP Morgan, Bank of New York and Morgan Stanley should all be able to repay the borrowed TARP funds in 2009. These positive stories helped motor the financial sector ahead 2.6% today adding to recent gains

Technical Take:

The market started the day continuing yesterday's rally adding nearly 100 points off the open briefly crossing back over 7,000 on the Dow. The 7,000 level proved to be resistance as the rally lost steam and gains faded to losses by midday. The market fell back to support at yesterday's afternoon breakout area, found the expected buying interest and rallied back to close positive. Today's action was constructive for the indexes as stocks held the entirety of yesterday's reflex rally. Day one after the initial move higher saw no retracement and healthy consolidation. The buying interest remains in tact for now.


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