Just a few days ago everyone was saying the top was in the top was in, some even were calling for the SPX to close below 1300 and find support at the 1275 level, well 2 days later and everyone has went to the bulls side, according to this article written after todays rally the stock market is now setting up for a "BIG RALLY" !!!!!!
hmmmmm, isnt this market psychology great, one huge down day and everyone says the spx has topped, bulls are sad and bears are cheering, 2 days later market rallies and everyone says the market is back and setting up for an even bigger rally, as always this is just comical.
Pro Traders: Stock Market Setting Up For Big Rally?
CNBC.com | March 03, 2011 | 06:13 PM EST
New developments Thursday triggered chatter that the stock market may be on on the brink of a major momentum shift, in favor of the bulls.
The positive sentiment stemmed from a decline in oil prices and stronger than expected economic data; both catalysts sent the S&P [ .SPX 1330.97 +22.53 (+1.72%) ] higher.In the Middle East the Arab League said a peace plan for Libya was under consideration. The plan put forth by Venezuelan President Hugo Chavez, if successful, could end a major headwind for equities.
Meanwhile, here at home, initial jobless claims fell last week to 368,000 -- a 2-1/2 year low and the Institute for Supply Management's non-manufacturing index rose to 59.7 in February, slightly above forecasts and higher than the January result.
âThe progressively better data has got hopes up that we are going to see better looking non-farm payrolls numbers" in the Labor Department data, says Scott Marcouiller, chief technical market strategist at Wells Fargo Advisors in a Reuters interview.
Considering oil and employment are two major market catalysts, are we looking at a shift in market sentiment?
Instant Insights with the Fast Money traders
Oppenheimerâs Carter Worth tells us he interprets the technicals as bullish. Looking at patterns in the chart of the S&P he says the current weakness is âa normal enough pause in an otherwise intact, comfortable uptrend.âJoe Terranova is bullish on fundamentals. He thinks Thursdayâs (strength) was about money managers wanting to get back in the market ahead of the jobs number on Friday. He thinks thereâs potential for stronger than expected employment data triggering a rally.Tim Seymour also leans on the bullish side. He thinks the market is trading well and heâs not even worried about the potential of a rate hike, which he thinks the market would take a sign of growth.Guy Adami also believes the market is trading very technically but he skews bearish. He thinks traders may be setting up for a possible disappointment if the jobs number isn't very positive. "If youâre long Iâd buy protection,â he says.Meanwhile, Steve Cortes thinks the winning trade is long oil [ CLCV1 101.89 -0.02 (-0.02%) ]. âIâm adding to my position if it dips below $100,â he says. Even if troubles in Libya die down, Cortes thinks they continue to escalate in other parts of the region, particularly Iran and Bahrain.
