Stocks Update - 8/23/09

Stocks moved up this week into Friday as forecast after the big Monday selloff. However the move was rather strong and went thru resistance to close at a new high for the year. This casts some doubt on the bearish outlook given previously. Monday is a key day. Most likely, stocks will go slightly higher Monday which may be the high for the week. There is resistance at 1032 and 1042 on the S&P 500. If stocks are strong up on Monday, that may change the outlook to bullish with a possible high at the next major time cycle due in mid September.