A nice shot of adrenaline here in the past 40 minutes, with the S&P surging over 1%. We are now back to the key resistance area but unlike Friday when we moved up so rapidly without a break, this time around there was at least a little pullback (all of 4-5 hrs yesterday) so there might be more energy to make a breakout. Hence I'd be more bullish here than I was Friday, especially if we clear last Friday's intraday high of 1220.
North of 1220 we have about 25-30 S&P points until we get to double resistance of the 100 and 200 day moving averages just below 1250. North of 1250 all systems are go again. Considering the state of the economy, valuation starts to become an issue in those areas, but if speculators believe the Fed can engineer another "David Tepper" moment ala fall and winter 2010-2011, then that's really all the matters in this type of environment.
While I had some doubts Pavlov dogs would show up ahead of the Fed meeting, buying as they always do, it looks like they are trained to buy fanatically ahead of The Bernank.
As an aside, some weird action in Sina (SINA) today - it just fell off a cliff, and is down 10%. Don't know why - maybe some censoring action for Weibo... looking around. EDIT 11:18 AM - looks like some talk of tigher chinese regulation of e-commerce sites. Stock is back to 'only' -6%.
Best Of FMMF
- 1: Warren Buffet Piles on Europe
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- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows