Thursday, June 18, 2009
A New Downtrend?
Wednesday saw more losses for the major indexes though declines were minor compared with the prior two sessions. The Dow lost 7.49 points to end on 8,497.18. The SPX gave up 1.26 points to a finish at 910.71. The declines we have seen over the last few days have helped our position and we are in the green and looking good with one day to go.
Not much happened today. In economic news, consumer prices rose 0.1 percent overall and at the core. This was 2-tenths below the headline forecast, but matched core estimates. In the past year, consumer prices are down 1.3 percent, their largest drop in nearly 60 years. However, it isn't current inflation traders are concerned about, rather what inflation pressures there will be down the road thanks to billions of dollars being placed into the global economy by both the Fed and the BoE.
The Dow and the SPX are trading between their 50-day and 200-day moving averages, which happen to be narrowing. Something will have to give once they meet...the move will be either up or down.....I'm betting down but what do I know!
Until next time.
Not much happened today. In economic news, consumer prices rose 0.1 percent overall and at the core. This was 2-tenths below the headline forecast, but matched core estimates. In the past year, consumer prices are down 1.3 percent, their largest drop in nearly 60 years. However, it isn't current inflation traders are concerned about, rather what inflation pressures there will be down the road thanks to billions of dollars being placed into the global economy by both the Fed and the BoE.
The Dow and the SPX are trading between their 50-day and 200-day moving averages, which happen to be narrowing. Something will have to give once they meet...the move will be either up or down.....I'm betting down but what do I know!
Until next time.
# posted by Paul @ 3:00 AM 
