July 29, 2009 (FinancialWire) (By Dr. Joe Duarte) — The S&P 500 (SPX) took an intraday dive but ended the day near even on 7-28. More important, the Nasdaq Composite (COMPQ) recovered more by the end of the trading, ending positive. If this is how the correction is going to develop, it won’t last very long, especially when you consider that the traditionally bullish end of the month/start of a new month period starts on Friday.

What that means is that we may see some back and forth trading for the next couple of days, and that by Monday of next week we could see another run toward the 1000 area. Support for the S&P 500 is at the 943-956 trading band. A move above 1000 could take the index to the 1060 area in a hurry. Watch the action away from the major indexes, as the biotech sector continues to move higher, and traditional technology stocks are also weathering the down days quite nicely.

In a market with this much momentum behind it and so many money managers that have missed big profits, it doesn’t pay to be too bearish for too long. So far, those who buy the dips have been rewarded. Until someone proves that this strategy doesn’t work anymore, you have to give it the benefit of the doubt. Watch the action by the middle of next week, though, as fears of the employment report could start to eat into what could be fast and furious gains in the short term.

Bottom line, the next few days could be remembered as a feeding frenzy by the mutual funds that missed the rally.

The FirstAlert(tm) Events Calendar showcases CMD, CVU, CY, LCAV at CapStone Investments 3rd Annual Small Cap Investor Conference; IBKC, FCBC, OFG, BBNK at Keefe, Bruyette & Woods, Inc. Community Bank Conference; NOVL at Burton Group Catalyst Conference; RF Investor Day.

The FirstAlert(tm) Money Index is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ 50 Most Actives indicate the direction in which the mass of money is flowing. Last session’s trading showed 27 advancers versus 22 decliners and one unchanged. Advancers were led by Antigenics Inc. (NASDAQ: AGEN) up 27.23%, Ariad Pharmaceuticals, Inc. (NASDAQ: ARIA) up 14.29%, Citigroup, Inc (NASDAQ: C-WD) up 14.23%, Tenet Hlthcre Cp (NYSE: THC) up 13.06%, Citigroup Inc (NYSE: C) up 10.41%. Decliners followed Usec Inc (NYSE: USU) down 34.57%, Office Depot Inc (NYSE: ODP) down 18.13%.

Investrend Website of the Day: http://www.everyonenegotiates.com/negotiation/nonverbalnegotiation.htm

Quote of the Day: “There are two things that will be believed of any man whatsoever, and one of them is that he has taken to drink.” Booth Tarkington

Today is: Rain Day, National Lasagna Day.

Happy Birthday: George Bradshaw, Alexis de Tocqueville, Booth Tarkington, Clara Bow, Dag Hammarskjöld, Melvin Belli, Irwin Corey, Richard Egan, Elizabeth Dole, Peter Jennings, Neal Doughty, Ken Burns, Geddy Lee, Martina McBride, Wil Wheaton.

Today in History: James VI was crowned King of Scotland at Stirling in 1567. John Graves Simcoe decided in 1793 to build a fort and settlement at Toronto. American Civil War: Confederate spy Belle Boyd was arrested in 1864 by Union troops and detained at the Old Capitol Prison in Washington, DC. Sir Robert Baden-Powell in 1907 set up the Brownsea Island Scout camp in Poole Harbour on the south coast of England, regarded as the founding of the Scouting movement. The International Atomic Energy Agency was established in 1957. U.S. President Dwight D. Eisenhower signed into law the National Aeronautics and Space Act in 1958, creating the National Aeronautics and Space Administration (NASA).

[FirstAlert(tm) was created by Gayle Essary, founder of Investrend Communications, Inc., parent of Investrend Information. The opinions expressed in FirstAlert(tm) do not necessarily reflect the opinions of FinancialWire.]

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) web site (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Free annual reports for companies mentioned in the news are available through the Free Annual Reports Service (http://investrend.ar.wilink.com/?level=279).

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.