End of Q2 2009

Today is the last day of the month and also the quarter. So from a technical standpoint it is an important day as institutional investors close their books. "Window dressing" trades could occur which could benefit strong stocks but given that this a well-known concept, it is likely that it has already happened. There might be few procastinators but they are not likely to move the market. The bottom-line is the people will likely not sell into this market.

The future is pointing to a slightly positive opening but that could change. Case-Shiller HPI is coming out this morning and so is Chicago PMI. The most important will be tomorrow's ISM and Thursday Employment figures.

For S&P500, the key levels to watch on the upsides are 930 and 940 and on the downsides are 925, 920, 915, 910 and 905. On the hourly chart, the S&P500 is showing an uptrend which could take it to 935-40 level and that could happen if it does not fall below 925, the 8mavg on daily chart.

Nasdaq is also trending up both on hourly and monthly charts. The key level to watch on the downside is 1,840 and 1,830. On the upside if it goes above 1,855-60 then we'll be heading towards 1,880.

In today's market I should remain strategically long unless the overall market breaks the key technical levels to downside.

APOL released its 09Q3 earnings and beat the street estimates handily. It is up almost 10% in the pre-market. If it opens above $70 and holds onto that level then it could go to $75-$80 level. There is a long-term resistance at $70.

We are seeing some muted action on DE since Goldman upgrade last Thursday. The daily chart still points to a down-side risk although a hourly-chart shows and interesting up-trend. If it hugs the $42 level on a strong volume, we could see a signficant uptrend going foward.

GS is within a shouting distance of its high ($151). We'll see if it bouches off those levels. This stock could be benefiting from the "window dressing trade".

BAC and MS are showing interesting up-trend on hourly chart. For MS the key down levels are 28.80 on the upside 29.40. For BAC the key levels are 13.00 on the low and 13.40 on the top.

FDX was upgraded by Barclay's following last week's upgrade by JP Morgan. It is up almost 2% in pre-market and if it holds 54.40, it will be a bullish trend.

MCD is up almost 1% pre-market. Not sure why. If it breaks 57.7, it'll be interesting.