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Key Levels
Upside -- 1315-1325
Downside -- 1300, 1257-1270, 1231
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SPX Daily (12 Month)
We are bouncing around inside those thin bollinger bands. This is just a rollover process of wearing down support. Certainly feels like bears will get burned by the numbers you see everyday, but I don't think that's the case.
The stochs have continued to decline and look to be ready to take a quick dive. The market usually plays some catch up, so I expect some sort of fairly hefty decline here soon within a few days.
The MACD is still way up in very overbought land. The sell off, once started, will not be over utnil the MACD is at least close to zero from its current level of near 17.
We should finally be able to come to conclusion as to what we are dealing with and where we stand soon as the power of this next decline will tell us a lot about this market.
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A lot of money piling into treasuries lately. Have you watched the 10 year yield?
I know that Bernanke has said what he said and that is a contributing factor, but think about it.. if this was such an economy on the verge of really entering a strong part of a recovery, would people be dumping tons of cash into 10 year treasuries that yield 1.84% over 10 years.
no... 1.84% over 10 years means I just want my money back.
A strengthening recovery and stock market surging to 1450 by year end does just not jive with the amount of money piling into treasuries at these rates.
We should know a lot more soon.
GL
CJ
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