Monday Jan 30, 2012
Even CNBC kicked off today by noting that the SPX na dother indices are about to experience a 50 day MA crossing up over hte 200 day referred to as a Golden Cross.
Today was typical of recent morning action and particularly monday action. The market sold off as the weaker European markets were still open when the NYSE began trading today. After a brief move lower the markets recovered registering small losses on the day's close. This is working off the recent overbought condition and setting up a breakout through 1345 and eventually 1370.
Gold and silver are the leaders with shallow pullbacks today and later recovering with a slight negative close.
TBT fell but may be making a higher low here with a close at 18.49.
Luxury goods have pulled back and commodity stocks like TIE have pulled back working off their hourly overbought condition.
Energy Serivce XES looks to be making a higher low.
UUP could not better its high from Friday.
TLT - Hourly overbought
Is that the lower high in TLT we have been expecting, could be.
Our overall view is unchanged that TLT and UUP will decline.
Even VIX jumped to an hourly overbought MACD reading today.
Okay just updating. Short market pullbacks are necessary to prove the underlying support to sustain ongoing conditions. The SPX has now tested its 1300 level and good buying came in.
Stay the course, higher oil, gold, silver, stocks lie ahead. By the way we noticed on the Business Insider site this morning that full serve gasoline in CA is $4.75....OH that's right the legislature just mandated a certain percentage of electric cars by a certain date. Do all other cars cease selling if the quota is not met, just wondering....
Thanks for reading The Market Perspective.
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