Another test for major indexe

4/24/08

Today the Financial and Banking stocks helped life the stock market. Dow was able to climb higher intraday to 12942 before it closed 12849 which slightly below last friday closing highs. But the broader S&P was hitting the heavy resistance zone 1400-1410, still unable breakout higher or precisely closing higher. The choppy advance over the past few months is simply allowing stocks to correct the rapid decline from the 10/2007 highs. Unless the major indexes can decisively breakout above their primary downtrend lines ( and 200days moving average ), this market is likely to begin moving lower over time. I would not be surprised by another short term rally attempt over the next few days. Let see how market turn out tomorrow with good earning report come Microsoft and Baidu.