YM pushes up to 5 DMA resistance at 12783. Some talk out there that inflation wil back off and so will the Feds. I don't have a vested interest in keeping you fully invested so I can tell you the following: I have never seen a consistent core reading at these levels (and growing) not met with an interest rate hike. It doesn't matter where rates are, it means that they are not high enough to contain inflation. So maybe the Feds will err on the side of caution because of housing and leave them unchanged, but they will not lower given today's data. Expect more distribution and do not chase today's bounce.
ES closed its gap and now the markets are free to drop. Let's see how far they go. The VIX still looks supportive, so we might have seen the lows this morning. But if the ADVDEC line gets below -1000 again, be careful if long.
ES closed its gap and now the markets are free to drop. Let's see how far they go. The VIX still looks supportive, so we might have seen the lows this morning. But if the ADVDEC line gets below -1000 again, be careful if long.
This entry was posted
on Wednesday, February 21, 2007 at 2/21/2007 01:33:00 PM.
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