Market Update - 11/4/2010

Basically everything made a new high today. Dow, SPX, Nasdaq, FTSE, DAX, Oil and Gold. We have basically blown through every single pivot point in 1 day. 1202, 1208, 1215, and 1220. If it means anything, we do have another resistance level at 1235, but I don't think the market knows what resistance means.

Wave counts? Well there are none right now. I am going to have to re-study the charts and see what makes sense at this point. Even for bullish measures, this move was a bit too extreme. I think the majority expected the 1215 area to hold... even if it was for just 1 tick. But no, the market sliced through it like a knife in warm butter.

So we have made new highs for the year and we are up about 109 SPX points since December 31, 2009 and about 210 SPX points since July 1, 2010.

We have some fib resistance at 1234. This entire area where we are in right now is the pre-2008 crash area. Right around the time before the collapse of Lehman.

But hey! Oil is once again approaching $90 a barrel! This is amazing news for the economy. Just ask the "9.6%" of people who are unemployed. I'm sure they love paying $3+ a gallon for gas.

In all seriousness, Oil is at some heavy resistance and is on the verge of a break out. If Oil is to break 90, we could see another run for the upper trendline, somewhere around $95 maybe.

VIX was crushed, down about 14% in two days... USD was hammered as well. Gold made new highs, up about 4% and Silver was up just over 5%

The one thing I find amusing is that the rally from the Marck 2009 lows to the Jan 2010 high was in anticipation of Quantitive Easing 1 to work. So doesn't releasing Quantitive Easing 2 mean that QE1 was a total failure? Why would there be a need for QE2 if QE1 had worked? Just saying...

Markets rising on hope or fear don't tend to end all that well. I don't need technical analysis to tell me that. Just looking at history is enough for me. Japan in the 90's ring a bell?

Here is my view on market sentiment, this is something similar to what I've seen in headlines over the past 3 years. Market psychology is an amazing concept... and comical at the same time.

Anyways, the Unemployment numbers come out tomorrow. I don't expect it to move the markets much. We will probably chop around tomorrow and continue to perhaps 1234 on Monday. Good luck trading!