Thursday, January 29, 2009

Is January Effect Intact?

The indices took off at the beginning of the year and the thesis states that as goes the first week of January, so goes the month of January.  That did not work out exactly as planned with the market taking the next two weeks off to ponder the "economic crisis."

However, the past week we have seen a nice ascending triangle forming in the Russell 2000 index of small cap stocks and the next resistance and price target is $48.50.  While it is unlikely the index will finish up for the month, the trend is upward and may continue to mid-February as the stimulus bill becomes reality.  Maybe sell on the news?

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