Wednesday, July 25, 2007

Dow Up 68 - Could Head Even Higher Thursday

That will ultimately depend on whether carry trade unwinding deepens or if there's more bad news on the credit front, but the market today absorbed a double dose of the Chrysler and Boots credit problems quite well.

With Apple flirting with $150 and roaring up to about the $220 mark even before analysts chime in about results in the morning, the bulls will have some strong ammo on their side.

I hadn't realized it until I read his newsletter this morning, but McMillan analysis president Larry McMillan noted that with yesterday's selloff, NYSE DOWN volume was 90% along with 90% down breadth. It's only happened 3 times since 1998 (though 40 times if you look at just stocks on the NYSE) and it usually signals bounce time over the next few trading days.

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