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While prices have broken key resistance (a), we're not out of the woods yet. While the 10 and 20 day EMAs are moving sideways, the 10 is still below the 20 (b). In addition, the 50 is still moving lower. On the positive side, prices are using the shorter EMAs (the 10 and 20) for technical support. The MACD has given a buy signal and is moving higher (c), but we're not seeing a meaningful increase in flows into the market yet (d and e). That is my big concern right now.
3 comments:
Unrelated to the euro but Gallup's underemployment index hit a low for the current year recently. Doesn't mean much to me but still something I suppose. New home sales on the other hand were downright terrible but I'll wait till summer clears up the distortions before I react either way.
The Senate voted to continue the stimulus (I think until September). If it makes it through the house and into law, the housing market could be bouncing for the rest of the year.
@Anon 12:36
Even if there are more tax credits I don't think it would help if it has an expiration date. Personally I've been pretty put off by all these credits/rebates/etc not because they don't work but because they create too much distortion and while they do work they don't set up any kind of floor afterward for the market to move up from.
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