Although 2008 brought about one of the worst bear markets in history, it ended on an upbeat note with the indexes climbing higher in the final sessions. That paved the way for some additional upside as 2009 got underway with a solid rally last Friday.
That rally produced an important breakout from multi-week trading ranges which had prevented the major averages from making any meaningful headway. With resistance now broken, on a technical basis this market should be free to continue north for a little while before the next important levels are approached.
The biggest key will be volume, as we’ve seen considerably light trading activity around the holidays (which is typical and expected). This week as traders return to their desks en masse, we should see some marked improvement in participation, which could also shed some light on whether or not this breakout will prove trustworthy.
So as you start to build your trading plan for this week, be sure to stop by and check out this week’s Market View video [1] over at the main site for a close look at the levels to keep an eye on.
[1](Click image to view video)
Trade well this week!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com [2]
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]