$Spiked after hitting the 133.46 level (around 50MA) and bounced above 133.91 (20ma) but right now is not being able to hold the 134.08 level which represents S1 on my chart’s pivot level.
We have no real catalyst to move us to the upside, The biggest company in the US can’t hold itself after missing earning yesterday, so this is it. Not only we have an over seas problem, but also the US is lacking confidence as earning season are slowly deteriorating the view that the US is the safe haven from other economies. My point is very simple. Since the housing crisis, other countries including Europe and their currency, thrived as a place to safely invest. Once the roof started to fall over the Europeans head, the US was one the safest places to invest since we had a Fed that used all it’s know tools to dig us out of a hole, and show us some good long term view.
But what we are really seeing is that Europe is a much bigger factor, so that is hurting the companies here in the US. The word globalization is now a bad word. It is the same as shouting I love porn in a the Vatican. Globalization did many good things, but also helped many bad people find flaws in other system, and that has broken rules that the Global economy thought it would never happen. I know I am being very broad today, but I will try to find some time to write all this in an nice post sometime soon.
The most important message I want to pass along, is that we are still under the neutral level of the $NYMO (McClellan Oscillator) and the $SPY is showing that clearly. If we have another bad data, or bad news from Europe, we will go again under the 50ma, and then all hell will break loose.
May you all have a good end of your day.
