Prosper, TX -- (ReleaseWire) -- 07/28/2009 -- After pushing past key upper resistance levels in the major U.S market indexes last week, investors it seems for now are pausing a moment to figure out what to do from here.
The S&P 500, an index used by most traders to gauge general market strength, has rallied nearly ten percent in the month of July alone. With most of the popular names having reported slightly better than expected quarterly earnings already, some normalcy could come back into stocks as we head into the seasonally dull month of August.
The pause could lead to a small correction in the markets which are now trading near overbought conditions, but traders aren’t expecting the dramatic pull back most had been expecting during this super rally of nearly forty-five percent off the lows set back in March. The S&P fear gauge known as the VIX, which during the deepest part of the meltdown was trading above 60.00 has leveled off significantly trading back near 24.00, suggesting moves of around fourteen S&P intra day points, not the major intra day swings we have seen most of the year of forty to fifty points.
The cost to protect large stock positions with options has come down considerably also signaling that most large firms aren’t expecting a major pullback anytime soon. Although fear has come off the table, it’s still a traders market. Buy and hold has all but disappeared from the play book for now.
Stock Futures are pointing to a lower open, so look for economic data out this morning to tell the markets direction the rest of the day. Retail, housing, and consumer data is on tap for Tuesday. Also, watch the previous resistance level on the S&P 500 index of 965 it is now a support level.
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Stocks we’re watching for Tuesday, July 28, 2009 include:
NavStar Technologies. (OTC: NVSR) Is up as much as 63.53%”Announced that the field trial in Ecuador has entered the final stages and will result in the execution of a Purchase Order for 4,033 units worth $732,000. “
Sympowerco Corporation. (OTC: SYMW) Is up as much as 33.33%.SymPowerco Acquires Majority Stake in these two companies (HMSI, HHHI)
Universal Detection Technology. (OTCBB: UNDT) Is up as much as 79%. “Universal Detection Technology Receives U.S. Patent for Automated Anthrax Detection System
Hard To Treat Diseases Inc. (OTC: HTDS) Is up as much as 92%. “Hard to Treat Diseases (HTDS) To Re Release European TV Segment In N. America For Potential Treatment Of MS “
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