Dow and S&P Diverge

Dow Index moves to a new 5-month high and high settlement. No confirmation with the S&P though, with that index 25 handles away from similar multi month highs. For now, I am suspect and would be more inclined to sit tight and look for a definitive move.

My opinion is that we will probably drift higher, however, if there is any negative news from Europe, I’d say, look out below. We are at the upper level of the 1000 point trading range. This could be a bull trap. Make a new highs. Get every one back in the water. Then Jaws comes swiming up and bits some folks in half….

Interestingly, the Gold, which I turned bullish on about 5 weeks ago, looks poised to move. Currently its in a triangle formation. A definite move above 1758 or a collapse below 1702.
I know that seems silly. A 60 dollar window of chop before we have a break out above or below the two trend lines. Yet that is what the charts show us. 1800 is the upside target 1550 would be the downside target I’d look for.
Wait for the market to make its move. All I know is the chart looks like its in a critical point in time.

Corn rallied 5 cents in the last 5 minutes. Pressure came out from Dec wheat. Friday is USDA. Numbers are expected to be friendly w/ some dryness starting to be the talk in South America. No big heat to go along w/ the dryness, but that could change.

That is all.
CER

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