You got me crawlin' up to you everyday
--ELO
After the dip was bought once more on Friday morning, stocks did something we haven't seen in a while. They exhibited weakness in the early afternoon and then drained into the Friday bell on relatively chunky volume. The Dow closed down over 200 pts.
This still leaves the SPX well above the well defined uptrend line initiated last November. That uptrend line is pretty much mirroring the 50 day moving average. Support resides about 30 handles below at SPX 1600.
Meanwhile, Treasuries remain soft after their sell off earlier in the week. This is interesting because the pattern has been for govies to rally when stocks decline in 'risk off' trade fashion.
The seas will change if stocks and bonds go down together.
position in SPX and Treasuries
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One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.
~William Feather
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