Courtesy of John Nyaradi
by John Nyaradi, Publisher, Wall Street Sector Selector
Today’s market action took a little of the recent froth out of the market as the SPX (SPY) declined -0.51% for the first day after six straight days of gains.
Bonds fell sharply with (TLT) the 20 Year long bond declining -1.3% while the U.S. Dollar (UUP) gained more than 1%. 10 Year Yields now are back to levels last seen seven months ago.
Precious metals (GLD) (SLV) declined along with Emerging Markets (EEM) and China( FXI).
The Dow broke to new highs for the year on Tuesday and today the FOMC announcement confirmed their commitment to continuing with QE2.
Consumer prices edged up +0.1% while the Empire Manufacturing Report came in a +10.51 vs a -11.14 prior and November Industrial Production rose to +0.4% form a -0.2% prior reading.
Riots spread across Europe while at home the Senate passed the tax bill which now goes to the House where it’s also expected to pass later this week.
The medium to long term trend remains higher and the SPX has strong support at the 1220 level, approximately 1% below today’s close.
Good Holiday Reading at SuperSectors.net
Disclosure: Wall Street Sector Selector maintains positions in various ETFs and positions can change at any time.
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