Little Bits of Good News
The Fed numbers point to a small reduction in the monetary base, a welcome bit of stability that we didn’t see during QE I and QE II. The trade deficit declined as imports declined and exports increased. Also Bernanke in his speech yesterday said little, basically he is done and Congress needs to get its act together. And lastly President Obama laid out an aggressive plan to increase employment. Will this be a wisp of good news that will flutter away as the Republican Congressman go back to burn and destroy in their attempt to regain the White House in 2012?
Time will tell but for the moment the dollar likes the change. We are on the verge of a technical trend change in the dollar that has been a long time in the making. What will be really interesting is if gold trades under $ 1800 and confirms the double top that has been building lately,
As to the stock market and the S&P 500, the wide longer term price distribution range of 1130 to 1330 with the swingpoint at 1230 prevails. At the moment a tighter sideways 1170 to 1200 range is the operative focus.