By Gareth Soloway on October 4th, 2010 11:48am Eastern Time
The markets sold mid morning as the SPDR S&P 500 ETF (NYSE:SPY) fell into the key support of last Thursdays low at $113.60. It has been a slow bleed which may tell us after a bounce at this current support, the markets have more downside to go. If the markets dropped sharply on heavy volume, it generally tells us there is an exhaustion of selling and the markets may bounce for a longer period. The SPY is trading at $113.71, -0.90.
For a change of pace, the U.S. Dollar is rising. We know the markets move inverse to the Dollar and that is holding true today. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $22.73, +0.08 (+0.35%). The Dollar is finding some strength today after worries started to resurface in Europe. This must be watched closely as any further problems in Europe would strengthen the Dollar.
Many of the former leading stocks are dropping back today. Apple Inc. (NASDAQ:AAPL), Chevron Corporation (NYSE:CVX) and Goldman Sachs Group, Inc. (NYSE:GS). It is rare to see all three of these leading players down. That has not happened for weeks. Apple has been a powerhouse up until last week when it started to stall. However, Chevron took over and lead the markets higher. Then last Friday, Goldman Sachs took over and had a strong day. This is not the case today with all three negative. To gain more insight, analysis, swing trades and education, join the Research Center.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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