Home > Uncategorized > 2012/07/19: Quick Post: Courtesy Brief Update: Can ‘Bernanke Put’ trump weak data?

2012/07/19: Quick Post: Courtesy Brief Update: Can ‘Bernanke Put’ trump weak data?

© 2012 ROHR International, Inc. All International rights reserved.

Short & Sweet again on the specific market comments in this post, because today’s TrendView Brief Update is a pointed discussion of the most critical short-term technical area being the 1,375 area. In other words, the ultimate near term Tolerance of whether the September S&P 500 future maintain it escape above the key 1,350-55 resistance; which is the far more major trend decision area.And as impressive as the sustained rally appears in the wake of the Chairman’s testimony Tuesday and Wednesday, there are some questions.

Do the earnings announcements outperforming such heavily downgraded guidance really amount to any improvement? It is of note how much of the earnings ‘success’ has been engineered by lowering costs rather than top line growth. And is the bulls’ inference that the Fed will move in to prevent economic weakness correct? Or will the only move to buffer it after it occurs.

Quite a few of those questions will be answered by…

 

…what the market tells us it thinks of all these complex cross currents. And the macro-technical decision can be boiled down to whether the September S&P 500 future posts a weekly Close above that 1,375 level or sinks back below 1,355-50 first. Sometimes folks make the markets more complex than necessary. The same psychology that was important on the relatively quiet ranging up to a new rally high on Thursday spills over into Friday; and in this instance (including the general economic psychology influence on other asset classes), that’s all there is!!

Thanks for your interest.

 

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