The S&P has been trying all day but it has not been able to get over the hump (the hump being the 1120 level which is the 50% retracement of 1575/666). Prices aren’t pulling back much, but one of these days, price are gonna move, and move a lot. My bet is to the topside as all the smart money is looking for lower.
US bond yields remain firm though marginally off their highs. We are at 3.74% from a quick blip to 3.76% late this morning.
December 2009 looks like a mirror image of late 2008. A year ago, interest rates were tumbling as the Fed announced they were considering quantitative ease. Today, yields are soaring as QE draws to a close. Last year the dollar fell like a stone late in the year; this year just the opposite. Last year we had a twenty big figures move the last two weeks of the year. This year remains to be seen.
