Just before the market opened, the dollar index took a dive, sending the SP futures up, and the SPX gapped up at the opn only to see the doolar reverse just after the open. The market is now in negative territory, as the frop did not stop at the gap.
The TNX gapped up big, although it also looks like it wants to fill in the gap. There is a mortgage broker who comes into the Starbucks I frequent, and he and I have had several conversations about the economy. He talks about what a wonderful job Bernanke has done, and being polite, I just kind of nod my head. He went through a very busy period of refi's a few weeks ago, which saved his rear end because business has been awful for a couple of years. However, it looks like the bond market is calling Bernanke out, daring him to put his money where his mouth is.
Despite the negative turn in the market, we have strength in XLF and XLV, XLK is the weakness, and the Nasdaq is under extreme pressure. The Nasdaq is now underperforming for several days in a row, which would constitute a trend, and not a good one. I'm looking for a correction here.
Despite the weakness, there are 24 new highs, including VNDA, up 762% on drug approval news, and breakout attempts in NVEC, GCA, and OCN. Among those reporting last night : LLNW up 7%, NKTR up 1%, NVEC up 4%, SMSI down 9%, SYMM down 1%, USU down 18%. Those reporting this morning: ARQL down 1%, ISPH down 6%, MMS up 4%, OCN up 11%, OMGISWM up 3.5%, SWM down 10%, SPH up 1%, TWGP down 1.5%, and SXCI up 9%. After the close we will be looking at CADX, CPKI, CSTR, DXPE, EGO, GSIT, HANS, ISTA, MVSN, THOR, INT.
Charts courtesy of stockcharts.com