Flat Lining

 1185 is once again proving to be resistance, but the problem for the bears is everything below it is support, as any dips below 1180 are being quickly bought up. Volume declined slightly today, but is about average for the lst few months. MACD is now going flat, as is RSI, which is telling us that upward momentum is about gone, but downward momentum has not shown up to replace it. Assuming we can break out of here (a big assumption) I calculate a target of 1210. If not, 1160 should be the first test of support.

 The Nasdaq not only is in the upper half of the range, it also had an increase in volume. MACD, while flattening out, is still positive, so this still has a little push behind it. Notice today's open nicely filled the little gap left a few days ago.

 The Russell 2000 can't get out of it's own way. This continues to lag, which will not help the market at all.  MACD has decidedly turned down here, and it appears to be picking up a little steam to the downside.

Treasuries were pretty interesting today: a big gap up in yield on the 10 year despite a gap down in the market. the market quickly reversed to follow yields up. The TNX broke through both an important pivot point and the 50dma today, and appears to be headed for a retest of the previous high, a break of which will signal a new up trend, and a headache for Bernanke and Geithner.

Since the world is now in a race to the currency bottom, the dollar index may not be the best way to measure the strength of the dollar. Copper, a dollar sensitive commodity, has been in a screaming uptrend since June, but is hitting a strong resistance level here. This has been good for one industry: the guys who make those cages that protect outdoor copper pipes, which would be otherwise cut off and recycled. Unfortunately, I have no idea who makes them.

The market sure appears to be running out of steam, and I suspect a downward move is coming soon, but it may not be much of one if distribution does not show up, and so far, other than the financials, it hasn't.

I will have the new highs update shortly.