Same story in the markets today leading to a flat day. A dip on more weak eco data (housing) as previous days, dip weakness sees buyers step in again and support stocks, but not to chase higher. Seems conviction buyers missing as are sellers and shorts not eager to press new positions as volume continues to be light. Put this all together and it’s the same trends day after day. When you have this ‘stall’ it makes any possible surprising catalyst in days to come a potential market mover as it’s all technical now. Eyes on 1101 support and 1120-1122 resistance. Near end of day, it seemed the market wants to atleast test the upper resistance as it’s an important level this week, the action has suggested such. Still, due to narrow trading range this week, a close under 1101 is a threat.
Unfortunately, a possible ‘threat’ emerged out of Brazil AMC, (AGAIN). See..link on site and see when October top occurred! Let's hope Jobless Claims are a positive or this Brazil story may turn out to be unwelcomed noised short term.
http://www.djimstocks.com/djim-journal-09/2009/10/21/as-sloppy-as-it-gets.html
Last time this led to FX noise globally for a short period as it makes investors skittish due to the idea more countries could take actions.
Today, the underlying weakness was in the AMC guidance reports from Nasdaq software..CRM ADSK. It would seem financials are lagging as well ( if you look at GS JPM), but the sub groups..Banks after Paulson headline crossed, regional banks and REITS are actually outperformers. Is this a sign of rotation or just a blip this week.