We are still pinned between the highs and the moving averages. I still believe we will likely end the year at or near the recent highs. Weakness in financials is being countered by some strength in the small caps (iwm), transports (iyt) and even real estate (iyr).

It will be interesting to see how the market and other financials react to the Citigroup capital raise. This has been talked about for weeks so certainly it is no surprise. The spin miesters will be out saying what a healthy sign this is etc. We’ll see. I was not happy with the way the financials have been acting ahead of this may be this clears the air.

BAC, JPM & GS all have a similar chart, sandwiched between the 20 day MA above and the 150 day MA below. I am not suggesting that these three stocks hold the fate of the market in their hands, but the market is going to have a hard time mounting a strong breakout rally without them.

To be a real believer in a rally I would like to see AAPL along for the ride. The 50 & 20 day MA lie just above in AAPL so it is going to have to recapture those levels to get going. The next support for AAPL is down at last week’s lows around 188.70.

There was not much reaction to the FOMC announcement this afternoon and that may be signal for what to expect going forward. Jobless claims, leading indicators, philly fed and nat gas #’s all tomorrow, opex Friday and a holiday shortened week next week.

Be patient and look for some decent volume and relative action before taking any of the following trades. Again use reasonable stops and look at these spots as a place to possibly fade the move.

a 30.1
azo 159
csx 50.17
mrx 26.05
nsc 53.25
pru 52
vmed 17.1