The financial sector virtually collapsed, then recovered, this week. Is the recovery for real? From a trading standpoint, most banks have traded back to their previously broken support line. With Citigroup, for example, the stock is in the $19-20 range. If the stock price holds in the next few days, then that will be an intermediate support price. If not, it will act as a level of resistance.
Tech Strength?
Not for RIM. Rim's sell-off was very apparent from the charts. Note MACD divergence to stock price:
A likely target prices for RIMM is $89.71. If that is broken, then the next level of support is $65.92.Two forward-indicating stocks for the health of the economy I like to look at are FedEx and UPS. Why? Internet sales are done through these companies (profit). The company is affected directly by the cost of oil/energy. From mid-2006 to present, the MACD was already suggesting weakness for FedEx. The stock tried, but failed, three times to break the $118-120.70. The stock finally traded down to $75. It will be a stock to monitor in the next while to determine when the US economy is improving.
