Somewhat confusing. The nasdaq is lagging while the DOW is moving on to new highs. The long term trend line in the DOW is somewhere around 11,050 so until this is taken out, there's always a chance for reversal. Yesterday we had a pretty big failed rally on the rate cut which was a big negative and today, at least the DOW anyway, recovers the failed rally and makes a higher high which is a positive.
The market is simply looking for news to go higher. Yesterday, the rise was because they got the rate cut, although a rate cut means the economy is struggling. Now today, the CPI suggests no inflation which means no more rate cuts, and the market decides to rally on this, a complete opposite thinking of yesterday.
Needless to say, there are a lot of mixed signals. |
