Ratings agency Standard & Poor’s cut its outlook on the U.S.’s debt to Negative from Stable today and most are quick to point out that this is well known. Is this really priced in? The market recovered a bit late in the day, with help from APPLE on its law suit again Samsung and a Bloomberg article saying government employees are now requesting Iphones vs Blackberries for work.
Overall, it still was still a poor day. Volume was not heavy but breadth was 4-to-1 negative. We manage to close above last week’s low but the S&P 500 is back below the 50-day simple moving average of 1,315. The overdone drop in the VIX righted itself with a quick bounce this morning. The late afternoon push higher worked off some of the very short-term oversold. We may be looking at more pain tomorrow and a bounce probably will not get very far.
Texas Instruments came out with unimpressive numbers after the bell. TXN was using two words we can expect to hear a lot this earnings season: “Japan Quake”.
Precious metals continue to defy gravity, especially silver. Can silver go higher again tomorrow or are we due a reversal there soon?
There are two interesting things I read today “double top” and “blame it on Japan” aka the TXN excuse. This may be the proverbial low ball quarter for technology companies but things are looking a bit better for the bullish case.
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