Today was the type of day in the market, that could give you whiplash for sure. There was a lot of strength in the pre-market, followed by a significant sell-off after jobless claims rose, then there was an end of day rally that allowed for the markets to finish solidly in the green today.

But where does the market stand a week since my last market analysis? I would say stronger then even before. We have had consolidation in the S&P and NASDAQ near its highs, the sideways trading that we have seen for about a week now, is helping work off short-term overbought conditions, while doing so on low volume. So the rationale would be that we could be poised for yet another leg up in the market in due time.

Now I still hold firm, as stated in last week’s market analysis, that we need to be careful in this market, to raise stops where you can and secure profits as much as possible, because, it is highly unlikely that when it is all said and done, that this market holds on to all of its gains, especially with the uncertainty still surrounding the economy and with all the chanages that are taking place at the federal level. Don’t take the current strength in the market for granted.

Here’s the NASDAQ and S&P charts…

nasd81309

sp81309

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