We have had some very constructive action today as the S&P 500 came down to test that 50 day moving average and has bounced smartly. NASDAQ continues to be the leader, and almost every day NASDAQ leads and the rest seems to follow.
Supposedly this afternoon rally is due to some encouraging words from the ESFS chief, but frankly I just think with such low volume out there, this is all machines and technicals dominating.
- The euro is creeping back toward breakeven on the day against the dollar, and US stock prices are following the euro higher, after Klaus Regling, chief executive of the European Financial Stability Facility, said Italy and Spain will be able to fund themselves and won’t have to tap the newly expanded bailout program.
(blah blah blah Charlie Brown teacher's voice blah blah blah)
We sort of have 3 major areas in the market now - below this 1188 we just broke through, between 1188 and 1225-1235, and then let's say roughly 1240 or higher.
The action in equity markets is interesting in light of relative weakness in a lot of commodities; but that group has improved as the U.S. dollar weakens and the euro rallied on (apparently) the comments above.