Monday, September 19, 2011

Before the Bell 9/19/11


The Market Technical

Monday Morning Chartology


This is a great looking chart. The S&P has bounced off the lower boundary of its rising short term up trend three (four?) times. A move above 1229 will put in a third higher high.





The GLD chart is a bit more worrisome. GLD is now three days below the lower boundary of its short term up trend; one more day below that trend line will confirm its break--clearly a sign of waning momentum. That said, Thursday the ETF closed right on an initial support level and then Friday bounced off of it. So it would appear that there is still a bid near current levels.





The VIX is still trading in the upper zone of its current trading range (not good); but notice that there is a series of three lower highs which is a positive.





Here is a great look at the VIX, how is works and what it means (long):
http://bit.ly/p8Byzk


Fundamental

David Rosenberg on what is driving this rally (long, but if you are a trader, it is a must read):
http://www.zerohedge.com/news/forget-operation-twist-rosenberg-says-bernanke-about-shock-everyone-what-about-come

Update on the Q ratio and market valuation (short):
http://advisorperspectives.com/dshort/updates/Q-Ratio-and-Market-Valuation.php

Earnings estimates are coming down (short):
http://www.bespokeinvest.com/thinkbig/2011/9/16/estimated-sp-500-q3-earnings-growth-drifts-lower.html