The Rally Still Continues

The Stock Market rally continued today with all indexes increasing since yesterday. Although the increases were not as big as they have been in the last few days, it was still an increase and the Stock Markets seem to be holding still at these levels. Wall Street closed at 7232, an increase of 84 pips. The S&P500 increased by just less than 10 pips closing at 758.4. The FTSE 100 had the smallest increase of 32 pips closing at 3795.

The American markets were supported by positive news among the banks, with Citigroup, Bank of America and JP Morgan Chase all talking about their earnings and Washington was also supportive of this. Citigroup and JP Morgan Chase have said that their banks have made profit in the first two months of 2009 and Bank Of America is expected to post profit for 2009 as well.

We have now seen a 4 day rally, and the markets are holding up at these levels, and there is no indication to suggest that this is a false rally. For the market, it is good news to see a rally, and to see a rally that is lasting.  Investors are being a lot more positive about the market situation and it is something that the whole economy really needed. My opinions are still that this is a bear market rally and it will be corrected in due course. Analysts have also warned investors that the rally may not last a long time and to be prepared when the correction does happen.

Monday will be interesting to see what will happen, and whether this rally can carry on going or not.

Kind Regards

Robert Stewart