The buyers are spending a lot of energy buying before close for three days straight and the S&P found support again at the 14 day simple moving average. Even though the dollar was weak and unemployment claims were better, and the bears were able to reverse the opening strength. The broad market minus technology is stuck in consolidat for the past 8 days. At the same time we also have Apple consolidating from $305 to $310 and briefly breaking below 305 intraday. Where Apple goes, the market follows?
We have a big chunk of earnings hitting after hours. Microsoft looks like a solid beat, and it increased guidance. Earnings season begins to slow after tonight, but we have the election and the Fed. There may be additional QEII details post the GDP report tomorrow. If the FED takes an incremental approach to QE II, we may get an initial sell off, but it would also mean that the QE put will be on for an undetermined amount of time. It would be hard for the bears to press knowing that the FED is constantly watching and ready to inject additional liquidity.
Related posts:
