This chart shows some similarities to April in particular the
triangle folllowed by the final thrust. The question here is
if the SPX can manage to recover and make another near term high or
if that is already in place. The SPX will need to clear and
hold back above the 1219-1222 pivot to suggest another attempt at a
new high.
The large dissimilarity of the current run up to the April high
is that the Fed was not engaged in massive QE/PoMO in
April. Remember we have a constant luquidity pump
into humongous bank and broker (and their trading computers).
$20b a week for the next 8 months while the QE-Lite that has
generated the bulk of this rally is only $6B/wk.
This peak might be another of those buy on the rumors (QE2) and
sell on the fact. Anyone who can answer why the dollar is going up
while the Fed is still printing a whole lot more of 'em?
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SPX
Posted by steve on 10th of Nov 2010 at 09:03 am
This chart shows some similarities to April in particular the triangle folllowed by the final thrust. The question here is if the SPX can manage to recover and make another near term high or if that is already in place. The SPX will need to clear and hold back above the 1219-1222 pivot to suggest another attempt at a new high.
http://www.screencast.com/users/dodger/folders/Jing/media/11bfa4f1-084b-4a4b-814c-7e90676f6820
this is intuitive and one should consider.
Posted by rreich on 10th of Nov 2010 at 09:54 am
The large dissimilarity of the current run up to the April high is that the Fed was not engaged in massive QE/PoMO in April. Remember we have a constant luquidity pump into humongous bank and broker (and their trading computers). $20b a week for the next 8 months while the QE-Lite that has generated the bulk of this rally is only $6B/wk.
This peak might be another
Posted by etcbari on 10th of Nov 2010 at 09:39 am
This peak might be another of those buy on the rumors (QE2) and sell on the fact. Anyone who can answer why the dollar is going up while the Fed is still printing a whole lot more of 'em?