Ok.. Now I know what they are going to do. It seems they intend to continue to do what they have been doing, because the economy is too weak to withdraw their support.
I got it! But I don't think that he committed to a QE3 immediately.
The market was positive most of the day, with a surge on the close, with the DOW closing up 95 and the SPX closing up 8.42. The rest of the major indexes also closed up a similar percentage. On the close, the close,. the SPX, the DJI, the RUT, and the COMP all closed with over bought conditions and negative divergences. Only the Transports closed with decent internals. It appears that the news the market did not want to hear did not get made, so it was time again to ramp the indexes on the close.
Beyond the Fed showboating, there did not seem to be much, if any news today that impacted the markets. One Observation though..... the soft commodities are all down on the close, and the Sugar and the Cotton have broken up trend resistance lines...... and these are the commodities that led the rally off the bottom in 8/2010
I think the SPX wants to trade higher, and I am looking for a place to get long. We will likely get some kind of a pull back on the morrow and I will be looking carefully at how the indexes approach the older resistance, which of course has now become support.
The TLT has been showing good strength and I would like to be a buyer, but I have been burned twice in the past couple of months and don;t want to get burned again. But if the TLT (an ETF that tracks the 10 year to intermediate Treasuries) can stay strong, the will be signaling that the stock market rally is in danger.
Best to Your Trading!
Bill
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