The QQQQs are now above previous highs, and are making new highs
The DIAs are near their yearly highs, and simply need a push to continue their upward trajectory.
The IWMs -- while below key yearly levels - are just below key resistance levels as well.
The Transports are also making new yearly highs.
The point of the above four graphs is to demonstrate the market breadth is hitting across all markets, not just the SPYs. In other words, the rally is part of all markets.
Also note that all the above markets are at or near key levels, indicating they are waiting for the Fed's decision tomorrow.
The long end of the curve has led the way lower. Prices have broken a clear uptrend and are moving lower in a disciplined downward sloping pennant pattern (a). Also note that money is leaving the market (c and d) and momentum is clearly negative (e).
Now the mid part of the curve is starting to sell off a bit. Prices have broken a long-term uptrend (a), money is leaving the market (b and c) and the MACD is moving lower (d).
1 comment:
I too noticed strong Transport numbers which should portend well for an imminent and more robust gains in employment, no? Transports move goods to market, though profits would be a lagging indicator imo.
I've been scurrying looking for the excellent data and charts you posted at DKos last year showing that employment does not pick up until 1 1/2 years after recession's end. Can you point me to that info please?
If the 1 1/2 years after recession end holds true, then we are looking at year-end as the expected blast-off imo. I actually expect the final qtr to put up decent growth of 3%+ and it looks like the Fed is going with a half trillion. Over how long though? $100 billion per month? That will obviously spur the S&P, but it is my belief that it will also restore full confidence post PIIGS scare among corps to finally invest the idle cash, ideally not ALL overseas.
A couple other things.
Do you have a number for just how many trillions profitable corps have sitting on their balance sheets waiting to invest? I heard months ago that it was a trillion but I also recall hearing 3 or 4 trillion recently.
I'm rambling, but one other thing that I've been harping on since 2008, the damn Chinese Yuan.
Read the article "Is there a way out of the Currency Wars" on Reuters UK Debate by Prof. Copeland. It's a good one. Here it is: http://blogs.reuters.com/great-debate-uk/2010/10/27/is-there-a-way-out-of-the-currency-war/
We should be out of this mess and on our way to sub 9% UE rate by the time the GOP actually gets seated imo.
Sorry about the Rangers, though I'm a Red Sox fan here in Mass and I wanted Cliff Lee, so I'm not all that sorry. :)
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