Late day selling hit the markets today, though on extremely light volume. The markets had been hovering up around a key trend line resistance point all day, yet could never break through and confirm. While the bond market was closed all day and volume was on holiday, the Dollar peaked its head up and inched higher. A higher Dollar is bearish for the markets. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) $22.49, +0.09 (+0.40%). This is a rare move higher.
Some of the strongest stocks of the day have given up almost all their gains. Apple Inc. (NASDAQ:AAPL) was heading towards the sacred $300.00 level but has now reversed, barely holding to the positive side. Google Inc. (NASDAQ:GOOG) was also solidly higher at 3pm ET, but has reversed most of its gains.
The markets are heading into murky waters in the next few weeks. The currency wars continue, China, Japan, Europe and the United States all trying to keep their currency from moving higher. In addition, Intel Corporation (NASDAQ:INTC) reports Tuesday after the market closes. This will kick start earnings season for technology. The PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQQ) are up 15% from their lows in the last six weeks. Have great earnings been baked in already? This are all murky waters the markets will have to wade through.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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