Monday, January 31, 2011

Afternoon Update

The markets that never die... Seriously, this stuff is getting old.  So far though other than moving above the middle bollinger, the candlestick pattern is similar to that of the April highs.  For it to continue we'd see strength tomorrow and considering it is the first of the month, that is very likely unless some shock event happens.

Interesting to note the SPX retraced exactly 50% of Friday's move before turning back. Volume is pretty light compared to 50MA volume and Friday.  Oil is up another 3% plus though which tells me people in the commodity space are not discounting a Suez canal shutdown or some other impact on oil prices.

The close will be interesting to watch.  Rumors of PIIGS debt haircuts and Ireland revising down its GDP from 2.4% to 1% (ouch) should at some point in some normal world put pressure on the euro.  Like I say, should...


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