Upside Looks Likely in June

Sunday, May 31, 2009

The pace of advance has clearly slowed as May was a month of consolidation in the equity markets. The lack of a pull-in indicates that the bullish sentiment remains in tact. The current pattern is a bull flag with the low end at 875 and an upside breakout to occur at 930. The 200-day moving average has served as resistance but approaching 50-day may trigger an upside move. 875 has proven to be an important level acting as resistance 3 times, and then support twice. This level may act as a springboard this week. Monday begins a new month and more upside looks highly likely.


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