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We're on another sell this week based on our weekly sentiment survey. It was a great call last week and now the Seven Sentinels have issued a sell based on last Friday's close. It is OPEX week so I would not be surprised with some volatile action.
Let's take a look at how the tracker charts are allocated for this week:
The Top 50 are showing little fear in the face of deteriorating technicals as they
An initial gap down of the major averages was never seriously challenged by the bulls today as the broader market ended the week with significant losses.
There was chatter that China might raise interest rates as the specter of inflation stoked fears that higher rates could hurt growth. Such speculation dropped the Shanghai Composite Index 5.2%. The eurozone sovereign debt crisis was also a continuing concern.
The dollar managed to break it's 5 day rally, but it's 0.2%
There has been no shortage of potential market moving issues so far this month. Just nine trading days into November and we've seen the election results, followed immediately by the FOMC policy statement. The FOMC policy statement contained the much anticipated QE2 decision and now one week later a potentially contentious G20 meeting. Traders have been sitting on pins and needles wondering how the market will react with each event.
We've seen some decent selling pressure so far this
As if on cue after a short bout of weakness, the dip buyers stepped back in and helped the major averages post modest to moderate gains. This in spite of another rally in the dollar, which saw the greenback hit its high of about 0.9% at its peak, but settle back down to a more modest 0.3% advance at the close.
Bonds were under pressure again today, but also managed to stage a comeback later in the session. The 30-year Note's yield was as high as 4.33% before closing around 4.24%.
Same story, different result. After weathering two days of dollar strength with little technical damage done to the major averages, the dollar staged yet another rally to make it 3 days straight. But this time the results were different. Instead of modest gains or sideways chop, we got a sell-off on decent volume. I had mentioned yesterday how much dollar strength this market would endure before seeing any serious selling pressure, and I got my answer pretty quick. The dollar tacked on another 0.9%