Coolhand's Market Analysis

A mixed sentiment picture probably contributed to a relatively dull day today. It was a choppy market with no meaningful swings in either direction.

Gold and the dollar have been the focus lately, and Ben Bernanke indicated in some comments today that the Fed expects to keep interest rates low for an extended period of time. Apparently, last week's jobs number was cited as the reason for the dollar's rise and gold's tumble. Why so much attention was given to those jobs numbers is beyond me. I think it was an excuse to take profits and nothing more.

So one would expect the dollar to reverse, which it did today, shedding 0.6%. We could take another shot at market highs this week if the dollar continues to sell-off.

And the Seven Sentinels show no reason to expect significant weakness either, but sentiment probably has to get beared up again to make that push higher, unless some news catalyst comes along. Here's today's charts:



We still have all four of these signals on a buy here.



TRIN and TRINQ flipped to a sell, but did so on a modestly. BPCOMPQ continues to make subtle moves higher, which gives me reason to expect that continuation rally at some point.




Our Top 25% are holding their position as usual.

So the Seven Sentinels remain on a buy. Not much to add today. I'm still long. See you tomorrow.