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Thursday, February 11, 2010

A News-driven Market


After staging an impressive intraday reversal off of support and out of short-term oversold conditions on Friday, the market has struggled to make significant progress in either direction, reacting to each and every news report and rumor surrounding the escalating debt crisis gripping Greece and the Eurozone. The euro has dropped sharply in recent weeks, just as the U.S. dollar has soared higher, and it seems that a near-term market bounce that is supported by the technicals may have trouble getting traction without some sort of bail-out agreement or other comparable solution being reached first. In the meantime, stocks have remained under pressure, locked in choppy range-bound trade and mired in uncertainty. Let's see a long-term chart of the Euro Index for some perspective.



Next, another look at the $NYSE Index and the considerable support at the recent low.



That's it for now. We'll see if a rescue plan emerges that lifts the market-- and a little of the dark cloud cover hanging over Greece.

Trade well.

- Brinkley
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