Strong earnings rally – Market Analysis for 16/04/2010 by Singaporeseeds

S&P

The rally from Tuesday to Thursday brought the market indexes to new highs. We are now at my first S&P resistance of 1210 and the market seems to be setting up for another rally in pre-market trading now. This rally should bring us above 1210. I have another resistance at 1215, which if broken, might mean that we are going up to as high as 1300 on the S&P.

I will be monitoring the developments closely over the next few days. Volatility had expanded over the last few days and as all market reversals are, we might peak and reverse in a very volatile fashion.


Crude Oil

Crude recently broke it's previous high and resistance at 82.50. It broke and came back to test support on Tuesday and rallied over the last 3 days together with the S&P. I have a first target at 87.15 which it is at now. The next 2 targets are at 92 and 96.70. However seeing the bearish divergence that crude has made for this last rally, i do not think it should be able to break even my first target level.