Close:
When bonds and commodities drop while equities rise, the rotation is pretty clear and bears need to be respectful. Whether or not it lasts depends entirely on the attractiveness of treasury yields. Right now, they are not on anyone's radar. As mentioned earlier, we are hitting a very key area, namely 4.1% on the ten year. It's the 1998 low, the 2001 low and the median point from 2002 to 2005. Once we are done with end of month adjustments, we will get a clearer picture. For now, SPX did another rejection at 1405, while techs are attempting a breakout. QQQQ is hitting the 50 area, another battle for the very resilient bulls. Those AD lines are just not that exciting, stalling at +700 on NYSE.
After the close, DELL did well in beating lowered expectations and the stock is probably a good long term play. But for the immediate future, this little comment from the CFO says it all for the overall market:
"Carty said the company is seeing spending conservatism in the U.S., especially in the financial sector, as well as from small and medium businesses and state and local governments."
This entry was posted
on Thursday, May 29, 2008 at 5/29/2008 06:50:00 PM.
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