Thursday, March 1, 2012

Early Look on Bond Weakness & Dollar Strength

1374.50 traded.. high of 1375 new day high.. bonds continue their weakness.. NDX on day highs as well, with individual components such as MSFT and AMZN doing work.

X is the pivot- 15 min ES zoomed
5 min ES
This morning bonds have broke down into new 2012 lows, 30 year specifically; trading as low as 140'09.

The dollar on the other hand is green on the day, slightly over the 78.85 level, equities are shaking this off so far. Remember today is the first of the month, mutual funds have cash to put to work.

15 min ZB
Upside Spooz resistance i have at 1374.50, which is the blue dashed line extended from two weeks ago, prior to the Sunday before Presidents day gap up.

Suport 1365 immediate followed by a 1359.75 line in the sand.. below this level we could see 1355 quickly.

Over 1375 we could mean a conversion into 1377.25 and beyond. An upside catalyst would be further break down in bonds, sending fresh capital into equities.