Apr 262010

Caterpillar released earnings this morning which were a little mixed, but overall positive with improved future expectations. The news did little to move the markets, but adds to the positive bias. On Friday, we say the market make new highs on lower volume. Could this volume divergence lead to another move down? There should be at least one more attempt at the annual highs this morning with strong resistance at the 1217 to 1217.50 area. If it breaks to new highs above this area, the bull may come out and then who knows how high it will run. The next level of strong resistance is way up near 1221.50. On the downside, if the market breaks the 1210 level, it should have a nice move back into 1208.

 Posted by at 9:21 am

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