Friday, December 28, 2012
Another day another test of nerves for the market. We started lower from the start, manage to stay above the 1410 convection area for most of the day and then dipped sharply lower at the close to finish at 1402. Anything under 1400 and this gets ugly fast. Ominous bad sign the long term momentum indicator is now headed lower. But given that lawmakers are back on Sunday to take once last swing at this, this may be what the edge of the cliff looks like for the market. Here that Washington, that the sound of America's collectively holding its breath.
Thursday, December 27, 2012
A lot of political drama and a wild ride by the markets today saw us finish basically where we started. I would not trust too many moves by the market because news either way is going to lead to a knee jerk reaction. Still sitting on the sidelines until they figure this out.
Wednesday, December 26, 2012
Market pushed lower today as Congress heads back to work tomorrow to try and come to an agreement before the new year. Everyone will be probably be tuned in to any little sound bite that could provide some guidance on whether a deal will be in done in time. Short term we are weakening with the long end still improving. We have now retouched that weekly support line once again and anything below 1420 is really not a great technical signal with the head and shoulders back in play.