A Sad Day for Japan and the World………..with update…2nd update
The nuclear crisis has everyone’s attention and the market until today has tried to ignore the situation. Our computer models on the S&P 500 remain 80 percent long coming into today’s action. This is probably to be expected because the models, which are self learning, have learned how the market is a one way street when it is manipulated by the Fed. Today will probably see a number of sell signals develop. On the S&P, two points are important today, the annual swing-point of 1251 and short term support at 1211.
Update at 11:15 AM
The market knows a secret, Bernanke will save it rather than let it clean out. With that being said it is still my opinion that while the stock and commodities markets overshot my earlier forecast highs for the year by six percent on average, the fact remains that the highs are in for the year and the market is going to tread water as we move forward.
The S&P 500, which we use as a gauge of the market forces in general, is now looking at a 1251 to 1298 trading range for a while.
We will provide updated forecast annual ranges in the next few days.
Update # 2 at 1:27 PM CDT
The Fed meeting announcement tips the balance to higher interest rates and a higher dollar. In My opinion T-Bonds should no longer be owned.