The Market opened lower on continued fears re: the UCU and the viability of the Euro. The dollar is slightly higer, the Euro is down, trading briefly under 130. Oil is up 80 cents and Gold is up $21. For those paying attention, the recent relationship between Gold and the Dollar has broken down, but Dollar strength continues to signal weak a Equities market. It should be noted that our propriety Momentum Change indicator generated a Buy signal for the Dollar on 11/05 at 76.25. The Dollar is currently trading 81.03
The press is full of comment this morning about weakness in Copper, and how the Copper index has been a leading indicator of Equity Market behavior. Our Momentum Change indicators generated a Sell signal in Copper 11/16 at 390. Copper is trading today at 381.
Our Momentum Change indicator for the Equities market continues in the Sell mode. Several additional technical indicators are flashing warnings of impending decline in the near term. We suspect that decline will manifest the week of 12/06 and it should be exciting. Mean time, the market is noodling around between 1180 and 1203 on the SPX. It may be possible to catch a small bounce in the SPX this week, however, anyone playing that day trade game needs to keep stops very close.
Good Luck Trading!
Bill
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