Resistance is (for now) Support
After clearing the bogey at S&P 1405 at last in the previous week, the index has now pulled back to that level and for now bounced off it... hence old "resistance" now becomes new "support". It will be interesting to see if this holds but I expect it to do so for now.
Some other thoughts
- As I've said in the weekly round up, the "strong dollar" fantasies have usually lasted 5-10 days or so... it was nearing midnight. With crude north of $120 and the dollar returning to its rightful place as the junk of the world, we might be done already. This happens like clockwork now almost every 6-8 weeks. As I wrote in detail last week, the fundamental issues facing our country do not allow for a stronger dollar... we continue massive deficit spending and we print money like mad to solve our problems. This is not a recipe for good, and Warren B agrees. All dollar rallies, while some might last days, some weeks, and some months - will be temporary. We are on a long term course of pathetic... and our only "hope" is Europe joins us in purgatory and starts cutting rate. But that's not exactly a bullish call on the US
- Apple (AAPL) got 2 upgrades today - its a slow day and I don't normally report the upgrades/downgrades because they are relatively meaningless to me... but if you are interested here is some meat (this is one great chart by the way, looks like its headed to $200 if the market does not sell off) - Apple shares rose modestly Monday after an American Technology Research analyst raised his rating to "Buy" and an RBC Capital Markets analyst increased his price target for the computer and gadget maker's stock. In his Monday note, Wu said he still sees a "potential product vacuum and drawdown in inventory in the June quarter" but thinks this is fairly known and that investors will be more focused on products launching in the second half of the year. "We see upside potential to iPhone estimates following changes, in our opinion, Apple may make to its iPhone business model, expected to accelerate momentum and expand its global addressable market," he said.
- Speaking of Apple, the cover story of BusinessWeek is a theme I've been promoting since the blog began (BW: The Mac in the Gray Flannel Suit) ... as an entire generation of kids, teenagers, and 20somethings enter the workforce, we could see a seismic shift to Macs in our corporate environment. This won't happen easy (the incumbent gorilla won't give up) and it won't happen overnight but would be the type of thing that would simply be enormous.
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