The market keeps going. Last night I highlighted some levels and I highlighted the purple line that you can see in the link as the level of resistance. That level was 1195. Today we breached that level and hit the second level, right around the 1220 level, that would be the white line on the chart above. Amazing how levels work.
The financials are leading here (broke through and held the 50 day moving average), which is a first. $JPM reports in the morning and I don’t think that anyone is expecting the world from the number, so it kind of makes you think. Have buyers discounted all the bad banks news in front of the number, or is a rising tide just lifting all boats? Getting interesting for sure. Don’t forget that $GS, $BAC, $C and $WFC are all on deck. The financials( $XLF ) are either setting up for a short of biblical proportions or something is afoot. I believe the former though, until I can be convinced otherwise.
Apple $AAPL & Amazon $AMZN acted well early, but got soft later in the day.
Europe keeps leaking news and that whole drama is just so very cute. It will still end badly, please don’t email me if all of Europe doesn’t default tonight. This is a rally for Europe right now and it is only the third inning over there in my humble opinion .However I digress and I am getting too macro.
Earnings from the banks will probably be lousy, we know that, but is it baked in? Who knows, the tape sort of telegraphed that today.
Is the Fed hinting at more QE? Will they morph “the twist” into something else? All I know in my heart of hearts, is that if I have to ask questions about more easing, it will all just end in tears.
Been long all week because the tape tells me to, but ready willing and able to release the hounds of hell the other way. Maybe that’s why we go higher.