Thursday, February 3, 2011

Yesterday's Market

So -- let's review.

1.) The market is still moving higher, although the higher risk averages (QQQQs and IWMs) are weakening. Essentially, the rally is getting long in the tooth, but the basic economic numbers have been incredibly strong this week, giving further upward momentum to the market.

2.) The Treasury market continues to consolidate. There is a strong big from the Fed and political events, but not enough to send the market higher. In addition, political events are keeping a safety bid underneath.

3.) The dollar is approaching key technical support. This will place a bid into the commodity markets, which are already moving higher from supply/demand issues.