Where is market heading now ?

Market has come off double bottom with the following stat from low to intraday high on Friday. :

S&P 500 UP 1148.22 points or 6.13%

Dow UP 1168.51 points or 7.33%

Nasdaq UP 354.32 points or 7.89%

To get that kind of move in 8 trading days is exceptional.

Easy move has been done

Now comes the tough part of digesting fast gains and fighting resistance.

Resistance is clearly @ 200 DMA in all indices.....

Some technicians are looking @ 2040 in S&P 500 as resistance...

US$ has been weak which has given a boost to stocks, oil, gold currencies and commodities

There is a strong feeling that US$ may resume its strength very soon, that will have opposite effect on above......

Gold is entering its weak seasonality in October.....

Sentiments of new found bulls are too euphoric

Bears are still leading bulls by 2.2%.....which is a contrary indicator, means there is still room for bullish TAPE.

SO...based on all that has happened and may be ready to occur, what strategy to implement.....

Do not go with euphoric moves which has already taken place

Try to focus on laggards with good fundamental

Try to book profit earlier than later

TAPE may rest for a while as earning picture gets clear...

I do not expect earnings to give a broader lift to the market, it will be a stock specific situation.

All in all is to check your euphoric side and be more conservative.....

Market has been tough and may remain so.....

BLOG does NOT give buy or sell.

Saleem