SPDR S&P 500 (SPY)

[Sean93]

Mid-week technical analysis-SPY

Wow guys, what a day! I saw that 0.70% drop this morning and i was starting to doubt this rally. But as i saw that rally up intraday, I was impressed by how much bullish pressure really is on this market.

There is something interesting I want to point out in this rally:

1. Consumer confidence was lower than expected.
2. Housing data didn't look too pretty.

However, we managed a 0.50% Green day.

How can markets possibly rally on such bearish economic news??????

There is obviously something bigger going on here. Investors aren't turned by this horrible economic growth. Perhaps all the gloom and doom has already been discounted in the market. Perhaps investors are bullish on the upcoming decisions of the federal reserve? Maybe its all the M&A's going on. Or maybe it's just that investors are bullish on our economy, despite the slow growth.

Remember, slow growth is growth nonetheless. And growth in the economy pushes markets higher.

Also, the dollar and commodities continue to decline, which is a good thing. The bond market is starting to turn, and since we have an inflating dollar, bonds and stocks are starting to turn in similar directions, rather than diverge.

Conclusion, our market will be up up and awaaaaaay!
For now atleast...