Thursday, 23 January 2014

12pm update - Dow holds the line

The Dow came within a mere 4pts of breaking the key 16174 level. Sp'500 is somewhat stronger, and despite the morning weakness, bears were still 9pts from breaking the 1815 low. Metals are holding gains, Gold +$25, but remaining under old broken support.


GLD, daily


There is a lot going on today..kinda hard to keep up!

We've certainly seen yet another weak morning..but we do appear to have formed a floor around the usual time of 11am.

Equity bears should be - as ever, keeping in mind that QE does indeed continue, with sig' QE due tomorrow.

*I'll add that even if the Fed do taper'2 next Wednesday, we're still left with around $60bn a month, which is an annual rate of $720bn..not exactly to be dismissed yet, is it?

time for tea!

12.29pm... Dow re-testing the earlier floor in the 16170s.

Lets be clear, equity bears need sp' <1815...and Dow <16174, only then can they justifiably start to suggest something new has started.

12.43pm... a fractional break <16174...only to see another micro bounce.

Mr Market is likely just teasing the it as done..incessantly since the Oct'2011 low.