And here we bounce – Market Analysis for 06/05/2010 by Singaporeseeds

The market made a nice correction to the 50 day moving average and seems to have broken it. Now all 3 indexes are sitting right above the monthly pivot support and are all at the all important 50 day moving average. A bounce at this point will mean either the continuation of the huge March 09 rally or a bounce before going to hell or a decisive break below will mean that erm….that its going to hell.

I will stick with the indexes making a bounce over the next 1-2 days to resistance level at around 1181 for the S&P before continuing to make its way down to the next strong support at 1150. However as the non farm payroll is just tomorrow, I believe this report will be an important factor in the movement of the indexes. I will be keeping my positions light until after the report is out.