Time to Squeeze the Bears?
08/02/2010 9:47 am EST
The stock market was able to absorb a fair amount of bad news last week as the Dow Transports showed the best gains for the week. The S&P's 50% resistance at 1114 was exceeded briefly last week and a move back above this level should make the bears nervous. A move above the June highs at 1130 is likely needed to start a short squeeze with the key 61.8% level at 1140. The McClellan Summation Index formed a bullish divergence at the June lows and is looking quite positive.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.