Mid-Day Thoughts

Awesome Readers,

                            Some negative overhang to the marketplace this morning, which is due in significant part to the early strength seen in the dollar, that was to a large degree manipulated by Fed officials.  Today’s action is not a fire sale.  There is no rout in progress, and trading volume is very light.
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1) Technically, equity markets are coloring strictly within the lines.  Early support for the S&P 500 was found at 2022, which is precisely where it would be expected.  The index did hit 2030 ( I had 2029), a possible level, but the one to shoot for today is 2035.  For that level to be taken, and held would be very bullish going into next week.
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2) There is no “Safety Dance” in play at this time.  they bought the VIX, and the long end of the Treasury yield curve early, but that has abated somewhat.  Gold is soft in the wake of yesterday’s sell-off, and the Utility sector is still in the red for the day.
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3)  Weakness in Oil, has WTI trading below the psychological level of $39.  Regaining that level would go a long way toward shoring up the Energy sector, and the Transports.
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4) Fed uncertainty has left the Financial sector in the dust.  James Bullard alone has done more to move markets this week than any actual fundamental element.