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11,000?
The big talk on the investment TV shows is about when the Dow will move above 11,000 again. They are sure hyping it. Yesterday it looked as if we were heading that way but it was a steady decline after the opening 70 point gain fell short.
The 52-week high of 11,027 from earlier in the year is holding. Sometimes the market doesn't pullback until after the breakout but the market showed its need for a rest Tuesday because it just seemed to run out of gas after the initial rally.
Chart provided courtesy of
www.decisionpoint.com
The indices in general were flat to down yesterday except for small caps which did modestly well considering. Bonds were hit hard and I think today's action will give a good clue as to the next move.
Chart provided courtesy of www.decisionpoint.com
The 50-day moving average acted as resistance again for the 30-year bond but the low made the other day held. A move to 112 would be a negative. A bounce back toward resistance would be encouraging.
The international funds were up but the dollar's strength caused the I fund some problems. As we talked about yesterday, the dollar did bounce off of "solid" support (see chart toward the bottom of the page) and if that does hold the I fund could be stymied a while longer.
We are still playing defense but the recent market chop is bringing the intermediate term indicators off of their extreme overbought conditions. The market's inability to close higher after the recent short term oversold condition is another sign of trouble. Another negative day would break the 1st area of support I charted yesterday (see below).
That's all for today. Currently 100% G fund. Thanks for reading. See you tomorrow.
The big talk on the investment TV shows is about when the Dow will move above 11,000 again. They are sure hyping it. Yesterday it looked as if we were heading that way but it was a steady decline after the opening 70 point gain fell short.
The 52-week high of 11,027 from earlier in the year is holding. Sometimes the market doesn't pullback until after the breakout but the market showed its need for a rest Tuesday because it just seemed to run out of gas after the initial rally.
Chart provided courtesy of
www.decisionpoint.comThe indices in general were flat to down yesterday except for small caps which did modestly well considering. Bonds were hit hard and I think today's action will give a good clue as to the next move.
Chart provided courtesy of www.decisionpoint.com
The 50-day moving average acted as resistance again for the 30-year bond but the low made the other day held. A move to 112 would be a negative. A bounce back toward resistance would be encouraging.
The international funds were up but the dollar's strength caused the I fund some problems. As we talked about yesterday, the dollar did bounce off of "solid" support (see chart toward the bottom of the page) and if that does hold the I fund could be stymied a while longer.
We are still playing defense but the recent market chop is bringing the intermediate term indicators off of their extreme overbought conditions. The market's inability to close higher after the recent short term oversold condition is another sign of trouble. Another negative day would break the 1st area of support I charted yesterday (see below).
That's all for today. Currently 100% G fund. Thanks for reading. See you tomorrow.
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