The reflex bounce continues | stockbee

2/04/2008

The reflex bounce continues

  • The market has had a 8 days of rally and out of that 6 days were 300 plus days.
  • This has resulted in the spread between the 65 days has narrowed considerably.
  • In last 2 days some stocks at or near 52 week high are beginning to breakout.
  • Till now overwhelmingly the stocks breaking out were oversold and heavily shorted stocks.
  • The lack of participation by good quality stocks in this rally is one negative.
  • Another negative is almost all the major leaders and leading sectors have put in top and showing signs of distribution.

1 comment:

wimpyVO2max said...

There are some nice charts in the drug sector -- which would make sense, that's a traditional 'safe haven' in a bear market.

ISIS, TEVA, FRX