Market View:

Thursday, January 24, 2008

Market View: Stock indices extend pull back off morning highs, muted reaction of Energy data (1338 -0.43) -Update- -Technical-

Noted in the 10:12 update that the S&P 500 had tested/stalled near resistance in the 1353/1354 area (session high 1353.24) after a roughly 6.5% sprint off Wednesday's midday low raising potential for some corrective trade to kick in. Have seen some follow through downticks develop but the decline has been relatively limited thus far. Intraday patterns suggest potential for further sideways to lower trade which would allow the market to catch its breadth after the recovery sprint without inflicting damage to the reversal. Short term supports below the low (1334) are at 1330 and 1323.