What Would You Know About Pressure? ~ The Risk Averse Alert

Thursday, March 19, 2009

What Would You Know About Pressure?

Inasmuch as CNBC's Fast Money can be helpful in establishing one's analytical bearings, tonight's lead segment from Cramer's Mad Money was a gold nugget, too. His view certainly backs my sense of the big picture.

Today's so-called "pressure" speaks volumes, particularly where it was felt most. Speaking of volume ... did you happen to see how relatively beefy today's was on the NYSE?


The usual suspects — financials — were beat up today (XLF -8%; BKX -9%). However, notably, the broad market did not quake. I must say, big-picture-wise, my projection for a big run-up ... right into a brick wall ... seems a reasonable, near-term view well-supported by today's trade.

One question you might ask looking at the above chart of the NYSE Composite is whether the market is at a point like early-November '08. Well, look at volume and RSI. Big difference. Underlying conditions are markedly more positive now. The market appears ripe for the driving higher.

NYSE 5-min
NASDAQ 5-min

Broad-based strength evidenced today (despite aftershocks in financials) lends a sense that, support lies not much lower.

Bottom line, further pressure lasting but a few more hours might be all that's left before the market throttles higher.

Fast Money
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