WalMart, the Real America
If you are perplexed about how the stock market can be so strong with so many people unemployed and states and municipalities in trouble and having to cut employment. Take a look at the real America, Walmart stock is 25 percent below its pre-recession highs in 1999. Yet when one looks at Apple and CAT the world seems to be fine. The world is not fine, both of these stocks are special situations, one involved in the feel good technology boom, and one involved in the world wide government infrastructure buildout. Both of these special situations are ending, there is no new money for these special stories.
1295, 1221, 1116, these are the three support levels for the S&P 500 off the recent highs. The trader climate remains bullish. All the computer trend signals are still bullish as the programs learn to hang on when you have moves like we have seen since September 1. As such look for buyers to step in at these levels, if any are taken out, the objective will be the next level down.