The SPDR S&P 500 ETF (NYSE:SPY) is floating lower today as the rally from last Friday seems to be fading. While the markets cheered Ben Bernanke’s statements and a better than expected revised GDP, fear is still in charge. Currently, the SPY which mirrors the S&P 500 has traded into the 200 moving average on the intra day ten minute chart. In addition, just below, there is a solid level from the pivot on Friday around 1pm ET. View the chart below.
The dollar is inching higher today showing that global fear is not gone. The U.S. Dollar is viewed as the “safe” currency and money flows to it when panic is in the air. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is higher by 0.04 to $24.11. Generally, the stronger the dollar, the weaker the markets.
Oil is weaker again with the United States Oil Fund LP (ETF) (NYSE:USO) down 0.40 to $33.17. Any fear about global weakness will hit oil as demand for that commodity would shrink. To gain more insight, amazing swing trades and education, join the Research Center.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
