Emini Futures Trading / Metals Up, Crude Up, Equities Down
February 22, 2011 at 9:30 PM Suddenly the world makes sense again if only for a minute..........
What goes up must come down!
Finally, the E-Mini S&P 500 had its dip or retracement. Muammar Gaddafi had been the leader of Libya since a coup in 1969. His power had endured 4 decades. When thinking of the ruler, one normally would note the anti-western policies. The unrest in Libya and the pressure on the US Government Officials to help the people of Libya have the market in a tailspin. The tanks, helicopters and war planes of Gaddafi were released on the demonstrators to squelch the protests. Senator John Kerry has been a voice against the treatment of the people of Libya and Secretary of State Hillary Clinton should make a statement today on the appalling violence. These tensions grew since the Reagan years. The delicate balance of alliances and adversaries are of extreme importance to the US as clearly any fracture could cause potential US involvement.
High unemployment and lackluster home sales can pressure the rate of the recovery. The market today has reflected the tired bull. Technical damage may be the game changer in terms of the week’s action. The market is subject to technical weakness and the CBOE Volatility Index rose accelerating the fear barometer.
Today’s US Reports: Consumer Confidence is at a 3 year high to 70.4 in February. (subject to revision) Are you more confident? Is your neighbor more confident? Is your co-worker more confident? Is the banker you just asked for a business loan more confident? Is the major supply chain you just requested a credit line with more confident? You just told your kid's day-care you would get caught up on the tuition next month. Was that a confident look she gave you? Oh, did I mention - Consumer Confidence is at a 3 year high.
BTW - US Home prices slipped again.
Tomorrow, we look forward to US Existing Home Sales at 9:00 AM CST.
Between the Lines
;)
What to expect tomorrow! Fear is not something to be here today and gone tomorrow. The move today is certainly enough to make the most aggressive bull contemplate the price action. The Daily Chart has turned bearish unless it was to penetrate $1343.00. The high today was $1342.50 and the low $1310.25. The close came in at $1314.50 (-$28.00). $1321.25 is our comfort zone or point of control for this market. One may think that after today, bargain hunting may be appealing. It is my thought that tomorrow may hold an inside to lower day. Potentially, if the market can gain downside momentum, to $1288.00, we could see bottoming action there.
Everyone thinks of changing the world, but no one thinks of changing himself.
Leo Tolstoy
Best regards,
Leslie Burton
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