Home > Uncategorized > Weekly Overview: 2010/01/11: And the Winner in New York is… Jobless and Credit-Challenged Recovery

Weekly Overview: 2010/01/11: And the Winner in New York is… Jobless and Credit-Challenged Recovery

As we noted at top of last week, Stop-Go 1970’s style volatility likely meant major trend swings would develop fairly quickly this year. While equities were somewhat moribund on Santa Portfolio Manager window dressing late last year, DJIA and S&P 500 could only remain quiet near highs for so long prior to the bigger decision we got at the end of last week. That strength above resistance levels was that much more impressive for having occurred into the face of significantly weak late week economic data.

The rare Flat-Bottomed Widening Formation in DJIA makes the 10,423 end of year pullback low even more important than prior to the incipient 10,600 UP Break. Beyond that, some other multi-asset class decisions remain consistent with equities influence, yet not very consistent at all in other areas, as in the govvies and US dollar. March T-note is holding major 115-00/114-16 support along with March Gilt holding well into minor support in the 114.00 area, and that would seem inconsistent with equities strength; except for the degree to which bond markets are trading off of real-world economics instead of earnings.

Similarly, while the US Dollar Index has been pressured below recent trading lows, it is only back into its recent .7700 UP Break with .7650 Tolerance (congestion, MAs & trend indicators.)

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