Wednesday, September 16, 2009

Morning Briefing for September 16th: New Highs

As we move toward the open, we find stocks making fresh highs once again, sparked by strength in gold and oil and weakness in the U.S. dollar. I'm watching the 1045 area in the ES contract (red horizontal line) particularly; it represents recent support and is also near the tops of the trading range going back to 9/11 and 9/14.

We're seeing continued strength in emerging market stocks and solid strength among U.S. smallcaps. Both suggest continued risk appetite among traders and money managers. While the rally has been extended by most any short-term measure--eight consecutive days of gains--the market indicators that I post before the open via Twitter (follow here) continue to look strong. These usually weaken prior to any extended pullback; I'm not seeing such weakening at this juncture.