I don't understand what all the hoopla about Dow 10,000 is. We have crossed to the upside and downside many times over the past 10 years. If you would have bought the Dow the first time it passed through in 1999 you would really be worth 7,537 as the dollar has lost 25% of its purchasing power. Isn't that great.
Today, felt like a knock out blow to the bears. We will see tomorrow. A couple of interesting things. INTC retraced most of its gains. A close below 22.50 and it may be an interesting short technically. Fundamentally, like everything, the valuation is to the stratosphere for a highly cyclical tech company that is experience alot of double buying in prepartation for Microsofts new window program.
At this point, there seems to be only one last great hurdle for the bulls to overcome. The great bear trendline from November of 2007. It passes through 1019 tomorrow sloping downard losing a half point or so a day.
The dollar has got to be one of the harder calls right now. Does it crash, causing yields to spike, and the stock market to move down with the dollar? Or does the negative correlation hold, the dollar rallies at some point on short covering or some negative news in Europe causing the market to sell off? Or does it drip drip down and the market continues to go up?
It is hard to be bullish on the dollar but does anything crash when everyone is that bearish of it? Well maybe? What about a year ago October? The market was cracking, everyone knew it was cracking, and it crashed. I don't know. This dollar thing keeps my mind going. What I do know is that it can't be to much longer before it keeps going down is not considered bullish for stock.