The Wrap 5/18/11

{+++} More skullduggery and tomfoolery from Mr. Market today. The S&P did an admirable job of holding support. The material group ripped it (XLB) up 2.6%. Was it a just a “relief” bounce or was it a trend change? I have always said that “one day does not a trend change make”. Oil and oil services went higher too. The dollar is key.

Check the P&L. To the many new subscribers, this week has been wild and the market has been volatile. Sit and watch, trade small. No real direction here, tough to trust whether this is a dead cat bounce or a reversal higher. Let’s watch the dollar, it is key.