Market Update - 9/8/2009

Dow Jones Industrial Average: +56.07 or 0.59% at 9497.34

S&P 500 Index: +8.99 or 0.88% at 1025.39

NASDAQ Composite Index: +18.99 or 0.94% at 2037.77

NYSE Internals: 2288 Advance. 749 Decline.

Market rallies higher on the lowest volume day of the year.

The SPX gapped opened above the 1016-1018 resistance zone. It kept finding support at the 61.8% retracement level around 1021. The next main resistance is around 1030-1032.

I'm going to stick with my primary count that we are still in wave ii of Minor wave 1. The reason being that we are rallying on such light volume, and the market internals just don't seem too impulsive to the upside.

Being so close to the 1030 level, I think we may hit it tomorrow(wave 5 of c of ii) then probably head down. Breaking 1030-1032 will probably mean that we get a run back up to the highs of 1039.

This market isn't going to find a direction until we get some volume though. We just can't continue higher on very low volume days. I mean come on, we had more volume the day before Christmas Eve!