The dotted line served as support early on in this rally and then turned into resistance. I really did not expect another trip to this trendline but we Kissed it and immediately retreated. The last 6 days of advances has been on declining volume. There should be a significant pullback tomorrow. Jobless claims on Thursdays has sent the market rallying the majority of this year EVEN when bad...in fact especially when its been bad...will tomorrow be different?
VIX:SPX retreated to retest the wedgeline again. I expect a jump in this chart tomorrow.
GDP numbers were bad...-6.1% compared to an expected -4.9%...yet the market rallied! It showed that consumer spending is up. Thats good...except for the fact that unemployment is at an all time high and rising.
The government is loaning credit card companies money based on credit card back securities...so they can lend money to consumers to spend...so the consumers spend running up interest and fees. Yay we are saved! But how is this jobless consumer going to pay off their credit cards...How are credit card companies going to collect this money to repay the Fed...
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