TSG – The energizer bunny rally..just keeps going?

Dear Trader,

TSG Stock Market Letter
Week Ending April 24, 2009
Topics Discussed This Week:

* Rally takes a breather?
* Leaders bounce back again…
* Earnings forecasts show signs of hope
* Existing and new home sales fall
* Waiting for Case-Shiller
* Declining Treasury sales + new spending = Mission Impossible?
* Elliott Wave Perspective on the S&P500 … Dear Trader,

TSG Stock Market Letter
Week Ending April 24, 2009
Topics Discussed This Week:

* Rally takes a breather?
* Leaders bounce back again…
* Earnings forecasts show signs of hope
* Existing and new home sales fall
* Waiting for Case-Shiller
* Declining Treasury sales + new spending = Mission Impossible?
* Elliott Wave Perspective on the S&P500

It has now been seven weeks since this rally began and this week
stocks took a break. Since hitting its low in the first week of
March, the S&P500 is up nearly 28%. Last week we mentioned that
the S&P500 index was 9.6% above its 50-DMA and that is about
where it stayed this week (9.5%) so stocks remain overbought.
But indexes are also still banging up against key resistance
areas that taken together with how overbought stocks are across
the board, increases the chances for a correction. And now this
rally is losing momentum. If prices hold up it will show that
investor demand for stocks is increasing despite the technicals
pointing to a drop. But that must be considered a long shot.

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