Monday, March 30, 2009

S&P500 Trendline support broken

Just when everyone was happy the major US indices made up for the losses from the year start the break happened.

I few dyas before on CNBC I learned about several reports from the exchanges that collected data on the short interest -- the fact was that those companies with the biggest short interest like C, GM and so on were actually those that fueled that rally.

So it's not that hard to understand that the quick surge on the S&P was mostly due to short covering. Now that the March and Q1 is near end and those shorts are covered I assume things are going back to normal >> that is going short for a challenge of the recent bottom.

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