I analyze macroeconomic issues from a fundamental perspective, and I analyze market behavior from a technical perspective. Original macroeconomic analysis can be found here and both macro analysis and commentary can be found on my Caps blog. If you like or appreciate my analysis, please add yourself to my Following List

Monday, November 9, 2009


Just some observations (no charts)

Bullish for Equities:
1. Dow made a higher high
2. Breadth was very strong
3. DX made a new low

Bearish for Equities:
1. Russell, which lead rally down, has not participated very much
2. Light volume
3. USDX only went lower by $0.01. I have a count that shows a valid completion. Could be a double bottom?
4. VIX has not made a lower low. In fact it bounced of the 16 year trendline (see my last post or any of my other VIX posts).
5. Finanicals have completed a the necessary minimum retrace on *very* low volume.

Please feel free to add points for both the bull and bear cases.
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