Friday, April 8, 2011

Spoke too Soon

So much for the very tight range we could not break out of all week.  Finally some action.  There is a little gap in the chart from a 'gap up' almost 2 weeks ago at S&P 1320 so it will be interesting to see if we can fill that in the last hour.  We've broke the 10 day moving average, and sit right at the 13 day - which has been alternating with the 10 day as the major support line since late August. Neither of these is normally a major support area but the market has been so impervious to selloffs, they have served as the key lines during much of the past half year+.  Normally you'd use something more like the 20 day or 50 day ....

Meanwhile, crude oil has hit $112 - another thing that won't matter, until it does. Unlike 2008 when it took $130+ oil to get $4 gas, we're already facing it here in the $110ish area. Can't wait for Memorial Day.

The dollar broke a double bottom today, and is in a complete freefall - apparently something that makes Christina Romer giddy.  Hence not only are Americans losing money in the market in nominal terms today, but in real terms as well.  Double whammy.  Lucky us.

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