Sunday, October 4, 2009
Markets Getting Worried?
Former Fed Chairman, Alan Greenspan said on ABC's "This Week", that the jobless rate will pass 10 percent and stay there for a while, and a second stimulus plan is not needed now. ~read story~ Also the G7 met over the weekend and the dollar is lower in early Monday trading overseas. ~read story~
For the week ahead... ISM Non-Manufacturing Index out Monday and earnings season starts this week with AA reporting.
Charts indicate the $SPX is primed for more selling in October. Thursday, I noted that 1020 was nearterm support, on Friday the $SPX's low for the day was 1019.95. With the $SPX under 1035 I remain bias to the downside. Again the play has been a weaker dollar & higher stock & commoditiy prices...I suspect a nearterm rally to 78 on the dollar, a plunge under 76 could also spook investors. Keep and eye on volatility ($VIX), seems to be perculating lately as investors become less complacent.
*click on charts to expand image