Today was the opposite of yesterday. We did not have allot of net sell volume but the S&P 500 was still down over 25 points. Not sure exactly what to make of it. Can't tell if it was profit taking by the longs or new shorts taken out by the bears. The only good news for the bulls is that the futures put in a new high for this rally this morning and then the market bounced off of the 100 DMA right at the close today. Let's see if the 100 DMA holds tonight and during the trading day tomorrow. Don't think we put in a top for this rally today. Tomorrow is a key day for the bulls and the bears.
I still think that gold and the dollar are what you need to watch. Gold is up over $70 since the news that U.S. consumer confidence unexpectedly fell 24 hours ago. There were large transactions in the December gold contract.
it was weak selling today. Volume was lacking
VIX did not really catch a bid propotional to the selling.
SPY closed just below its 100dma.
I have a feeling that we go down to 1215-1220 tomorrow, even if intraday.
Also Euro did not sell off at all and it is the latest proxy for risk.
I can never remember when earning reports have been so good and received so little attention. It's as if profitability has nothing to do with the worth of a company.
Considering that earnings is not taking this market north, I think we're going test the lows before Turkey day.
Earnings reports are not as good as you suggest:
MMM and CMI were forthright and honest, and CAT beat and raised, and said what the market wanted to hear....which in my opinion was disingenuous....
I mean, no one knows how Europe or the markets will play out, so I don't know how any company can honestly raise guidance at this point.
And I agree with you the market will test lows before Thanksgiving.