Buzz & Banter
1. The dollar is skanky this morning, but there is some support for the Dec. contract in the 96.20-96.40 area and if it's going to bounce at all after practically freefalling over the past two weeks from 99.80, this is a place to start.
2. Two of our short-term indicators reversed down through Wednesday's action, the percent of stocks on the NYSE above their 10-week moving average, and the percent of stocks on the Nasdaq above their 10-week moving average, both reversed to Os, and both are still at very high levels. Understand that the intermediate and long-term indicators are still well away from reversing but risk is obviously high with these indicators above 70%.
3. Although financials were noteworthy non-participants in the recent break above 1015 in the S&P 500, they've been relative non-participants on down days as well. The Philadelphia KRB Bank Index (BKX) will break with a tick at 850 but so far today this group's relative strength is interesting. If we can't expect a meaningful advance to occur without this group's participation, we likewise shouldn't expect a meaningful decline to occur until the financials begin participating on the downside.
4. Buy and sell signals this morning are nearly dead even. In other words, this morning's red may be a relief for those who are bearish, but the fat isn't in the fire...yet.
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