
Early strength peaked about 30 minutes into the session. The DOW did not confirm a new recovery high as per the DOW Transports. As depicted on the chart above, we were about 10 pts. shy of the April high. Non-confirmation often precedes a pullback.
The second point of interest is the weekly chart of the S&P. Here we have the 200 SMA acting as resistance. Too early to tell if this is significant.





The longer term forecast for the $USD is nebulous given the lack of details and potential impact of QE2 easing.

IBM is setting up an ambush short. Price retraced 62% of the reaction leg lower following earnings. Failure to close above the 62% Fib. level leaves the door open to some selling. Intra-day trendline was breached going into the close today.


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