Another Early Market Bounce
The market got a strong bounce in early trading, but seems to be giving most of it back at the moment. This is exactly what happened on Monday, and is one of the reasons you always hear me say that I don't like strong opens in the market. I would much prefer early weakness, and then have the market rally into the close. Maybe that can still happen today.
The Yen peaked on Friday, and is down today for the 2nd day in a row. I don't want to see the FXY take out its November high. A lower high on the charts would be better.
Sentiment remains highly negative. The bull/bear spread in the AAII survey last week hit -30, the lowest reading since July 2006. Today, the ISE Sentiment Index hit 46, not far from a record low. So the negativity bubble is alive and well, which should help the market bottom soon.
Philly Fed President Plosser made some comments this morning about inflation that the market didn't really like. I wish all of these difference Fed heads would just keep quiet. They don't seem to be helping much, so let's just hear from them when the FOMC meets.
Google (GOOG) took more market share from MSN again in December, and this morning Microsofit (MSFT) made a $1.2 billion bid for Norwegian search engine Fast Search & Transfer.
Financials are really lagging today. Energy is up the most, as oil is up nearly $2 ($97). And tech is mixed. Let's hope this is Turnaround Tuesday.