Monty; Thanks, and RE > How can it go up so much point wise
with the internals so bad or am I seeing the
internals wrong? <<
No your seeing the internals right or mostly so, keep in mind
this run up today is just getting us back to where we were JUNE 10th
when I said looks like we just put in the top of the trading range,
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Also this is mostly in the blue chips , helped some by oil , and
the internet stocks..but still kind of narrow , in a way the blue
chips do go up first , as funds move money in them being cautious
on the idea they can get out of them, so it's still a very cautious
market , and not a broad based rally not yet any way.
We are at a resistance level right now..<G>
The next few days could be interesting, but if we are to have a
real rally and not fall back we still need to get more new highs
for a day or two than new lows. 87highs to 100lows today, that's
an improvement but the highs need to exceed 100 before calling it
a rally.
decisionpoint.com
MO MO trading and index funds bought mostly the blue chips,
now if they got enough cash reserve to get the S&P up above
the 1120 mark with conviction we could take off.
Till the 30yr rate goes back up to 5.75 or 5.8..
it was 6 last time we were here, so the lower rate is helping
out right now.
ALSO that can be looked at as strong, as
a lot of capital had to go into bonds to drive the rates down,
and you know with lower rates the utilities went up, so there is a
lot of cash spread around, and with low inflation, and a sort of
cautious blue chip buying, the over all picture don't look to bad.
Maybe ASIA will be with us for a while, but just how much stuff
did they buy to start with ?
I'd keep an eye on the high/low ratio..if the rally fails to follow
through , we could go down just as fast as we got here. Still it
looks like we have broke the down trend line, and cold be clicking
up a notch on the trading range..so if we do go on up I bet at
1130 she plays hell.
Jim
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