Market Update - 2/19/2010

The market seems to be very resiliant right now. It is shaking off all news, and is trying to climb higher. Despite the FED raising its Discount Interest Rate, the market continued to rise higher. The ES futures were down throughout the night, but started to rise after the CPI numbers this morning.

Yesterday, I posted a chart showing how wave 2's at the start of a new downtrend are usually sharp. Certainly this is what we are experiencing currently. We have retraced more than 61.8% on all major indices.

However, the SPX is finding some resistance in the 1110 area. 1115 is another level of resistance.

If we can break over these levels, we may get another push higher.

Even though we tagged these resistance points, the market really didn't back off very strongly. Perhaps it may consolodate more and then rise.

On the smaller time frames, we are currenrtly a little overbought.

The RSI seems to be diverging a little, but nothing to major yet. The MA's are firmly pointing up.

I will have more charts over the weekend.