We came out of the long weekend staring at a tough resistance level around 1017. Instead of trying to fight through it, the market gapped over it, and now it is support. The high at 1039 is now the new target for the bulls, and the pivot point for the range is right about 1028. In case of support breakage (a distinct possibility as volume picks up), I have another support level down near 1006. So today's levels to watch are 1017 and 1028. XLE is leading, big, with XLB second. XLV and XLF are today's laggards. Oil, gold, and silver are all going ballistic again, which can mean only one thing:
Yep, the dollar is getting thrashed again. After spending the entire month of August trying to carve out a bottom, the dollar index fell apart this morning and is heading down. Let's see, if a weak dollar is good for equities, then a worthless dollar should be great for them. Is this Bernanke's doing? If so, he's playing a dangerous game.
I wonder if he feels lucky.
I have 113 new highs, with 3 big gap ups, all acquisitions: ITLN, CBY, and ORH. Other than that I have found nothing like a good looking breakout.
Charts courtesy of stockcharts.com