Tuesday Wrap

After an overdue bounce, it's natural t have an overdue pullback, and that appears to be what we go today. I missed most of the day's market, so did not see a blow by blow, but judging by today's volume, there not a lot of panic selling, just a pause in the buying. We are short of the upper limit of the range, meaning we can go up from here, but also well above the midpoint, so we are close to neither support or resistance.  My guess is we will bounce around this range for the next two weeks.

Crude oil now appears to be following the market, getting a bounce with it, but the bounce appears to be coming to an end. That does not necessarily mean we go down from here, and since today's MACD histogram was less negative than yesterday's, I don't see a short term trend change yet. A down day tomorrow will change that.

Gold established a new trading range with the gap up a couple of weeks ago, since it has held that gap. The target here is about 184, which translates to roughly $1840 gold. And, believe it or not, I still hear "experts" saying gold is a bad investment.

The reports of the demise of the bond market on the S&P downgrade were not only wrong, they were drastically wrong. This is the exact opposite ofwhat was supposed to happen. But remember, the market always does what it is supposed to do, but never when it is supposed to.

Speaking of spmething that is not supposed to happen, the dollar should be a while lot higher than it is now, It's not, and I don;t know why, and that is seriously troubling.With the dollar where it is now, the market should be challenging the May high, and obviously it's not. Something is seriously wrong here.

Sorry about the lack of posts today, I had some internet connection problems again, but I also had a good time with my now 9 month old granddaughter, who kept me pretty busy.Sometimes the market can wait.

i will have the new highs update shortly.