Friday
Friday, November 20, 2009 at 8:47AM SPX Daily:
SPX is currently sitting on its October highs, but futures are pointing down this morning. One part of this chart that is very interesting are the indicators. All of them seen to be rolling over, and MACD and RSI are showing great bearish divergence.
Reading from my blog list this morning(now posted on the side of the site), I ran across a post by Charts and Coffee which he discussed the TED spread and the short-term treasury yields. Yep the TED spread haven't heard that in a while. Remember back in 2009 when everything was about lowering the TED spread, because "Small Businesses needed credit", more like big banks needed money. TED is now rising again, making money more expensive, making lending harder.
That brings me to few other pieces I read both from Zerohedge:
T-Bills are trading negative! The last time this happen was post Lehman crash
Here is a Merdith Whitney interview which she is worried about the lack of credit in the market and how the Fed will stop buying MBS in March
But there is more:
Barron's Piece on Negative Interest Rates
Something may be brewing in the market, TED is rising and yields are moving negative. These events occured after the collaspes of Lehman and other banks, not before.
SPX
Reader Comments (1)
I mentioned the $TED yesterday on a blog and I think that you are correct about emphasizing it this morning ... technically it has a formidable base developing (which is what caught my attention) ...
I wanted to note that the bearish wedge you questioned yesterday made a lot more sense to me when I moved the time frame down to 30 minutes ...
Finally ... SRS looks like it is ready to launch a bit ... 40.50 is my first downside target on the IYR ...