Contrarian Commentary- S&P 500 and US Steel Update
Folks,
The rallying cry to today's pre- market action is optimism in Europe about banks pre-paying some loans.The Euro is rallying in the pre market which should bode well for the markets especially commodity names but as a warning I must point out the bearish action of X yesterday of which we are long. We saw resistance at the $25.00 per share level. The positive is that Thursday was the third straight down day yet the down volume bars declined.
As to the markets the S&P 500 hit the psychologically
What are my concerns about this market? Where is the “wall of worry”? There is none. Of course that in and of itself isn't a catalyst for a sell off but as the markets continue higher with complacency building the inevitable sell off will be magnified. Keep and eye on bond prices. The chart attached is a monthly chart of th 10 Year Treasury which is firming up as the month comes to a close. If bonds begin to rally you an bet that the stock market will be adversely impacted.
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