Wednesday, April 9, 2008

Today's Markets

Welcome to the world of energy inflation as oil crosses $112/bbl although it closed lower. Corn also hit a new record. Merrill Lynch reported it will writedown an additional $6 to $6.5 billion in loans when it reports earnings. American Airlines canceled 1000 flights for maintenance reasons (is any airline doing any maintenance?). The dollar closed near its all-time low with the euro.

Yesterday I said the big story was whether or not the SPYs would hold support at the 136 area. They didn't, and they brought down the other averages. 134.50 is still the next area of downside support.

The QQQQs went down with the SPYs. They fell hard in the morning but staged a late-day recovery rally. Look for support in the 44.40 area.

The IWMs were consolidating in a triangle pattern. Once they fell through they fell hard. Look for support in the 69.40 area.