After a lackluster day yesterday, the markets will try again today. We have a resistance level
defined right before our eyes. We have a well positioned support level also. Now where are we going today?
Technically speaking, we have two short term negative divergences that identify weakness in the SPY’s movement so it wouldn’t surprise us if we continued not moving at all or if the market lowered today.
But sentiment among forecasters as to the growth of the economy has changed. U.S. economy should continue to grow this year, though forecasters have lowered their expectations about the pace of recovery, according to a new survey. Long term, this is not good news for investors.
But that is not the main influence on the markets this morning. The world stocks rose and the dollar slumped Monday after global finance chiefs vowed to avoid a currency war that could derail the global recovery. With no concrete guidelines to go by, however, investors are wary that this may only prove a temporary truce. Sounds like we will have cautiously optimistic markets this morning.