In my last post I said the support for the
spx was in the weakness of the dollar. As you can the dollar continues to hug the low of its trading range and must rally away from here strongly or it can swoon and the stock market will boom.
The count across the 910 line is seven which projects to a possible high of 980--7
x's up from 910.
I threw in a chart of the bank index. As you can see it is not rising with the market which implies that the credit crisis is not over.
If the dollar were going to fall one would expect precious metal prices to be creeping up and perhaps like the dollar index and the euro to be near some range boundary.
Energy prices too are weaker than the stock indexes.
The average
eeked out a new high on low volume in what looks like a successful test of the break above 96.11. That volume fell so much makes the bull case not as convincing because just as there was no supply, there might have been light demand as well, although heavier than the supply.
Prices
gapped down as might have been predicted by our little method of anticipating gap down openings and then rallied on diminishing volume. Prices fell until supply
dissipated into small ranges around 11:00am. The market then rallied persistently on small volume and small ranges but was able to take out any supply that appeared( the higher volume bars with low end or mid range closes.) This move ends right before lunchtime with a price and volume surge. The next hour has a small variation in price and no volume. That is no selling enters the market and the reaction is flat. Prices and volume again surge around 1:30 and again prices flatten out. The last 15 minutes, the close is painted higher on low volume for the close. The market is moving up on lack of supply. Markets can go a long way in this fashion. Strength in the dollar would end this bull market.
In my last post I said the support for the spx was in the weakness of the dollar. As you can the dollar continues to hug the low of its trading range and must rally away from here strongly or it can swoon and the stock market will boom.
The count across the 910 line is seven which projects to a possible high of 980--7 x's up from 910.
I threw in a chart of the bank index. As you can see it is not rising with the market which implies that the credit crisis is not over.
If the dollar were going to fall one would expect precious metal prices to be creeping up and perhaps like the dollar index and the euro to be near some range boundary.
Energy prices too are weaker than the stock indexes.
The average eeked out a new high on low volume in what looks like a successful test of the break above 96.11. That volume fell so much makes the bull case not as convincing because just as there was no supply, there might have been light demand as well, although heavier than the supply.
Prices gapped down as might have been predicted by our little method of anticipating gap down openings and then rallied on diminishing volume. Prices fell until supply dissipated into small ranges around 11:00am. The market then rallied persistently on small volume and small ranges but was able to take out any supply that appeared( the higher volume bars with low end or mid range closes.) This move ends right before lunchtime with a price and volume surge. The next hour has a small variation in price and no volume. That is no selling enters the market and the reaction is flat. Prices and volume again surge around 1:30 and again prices flatten out. The last 15 minutes, the close is painted higher on low volume for the close. The market is moving up on lack of supply. Markets can go a long way in this fashion. Strength in the dollar would end this bull market.
