Wednesday, March 2, 2011

20 Day Moving Average Held as Resistance So Far

So far so good for those of bearish inclinations.  After a cursory morning bounce, the S&P 500 went to touch the 20 day moving average and was pushed back.  We are in a bit of a range here between some recent support levels and this 20 day moving average, so it will be interesting to see which way we break.  I would think downward based on the technical action of late, but using historical precedent has been a losers game of late.  Whatever the case the easy melt up 'balls to the walls' trade seems to have finally taken a pause.

This morning we had the monthly ADP report and it came in 'better than expected' at over 200K, but there has been such a disconnect between this number and what the government reports 2 days later, it seems to have been ignored.  ISM Services tomorrow at 10 AM and Friday's employment data should be the 2 big drivers of the next few days..

That said, the market seems to be trading more on a 1:1 with oil at this moment... and gold and silver continue to surge as the people use precious metals rather than the U.S. dollar as a safe haven.  Silver is in yet another parabolic move...+30% in 5 weeks.  I wrote on the 18th it had broken out [Silver Broke Out Yesterday], and aside from a wicked reversal head fake last Thursday it has been straight up action since.

No positions

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