Noon Update: Markets Enjoy Float At Neutral To Positive As Dollar Moves Lower...Again

[Bryan Leighton]

Markets continue to remain on the flat line as the dollar has floated lower. As we always say, lower dollar value gives the markets a bid. We are seeing this yet again today as the dollar gapped higher and has moved down to the flat line. Oil saw a very nice gap up only to sell off and go negative. However, due to the fall in the dollar, oil has moved back to the flat line. On the weakness in the dollar, gold has inched higher. Gold still remains around the $1,000 level. On the SPY chart, watch the $105.50 level as resistance, then $106.00. As support, the 50ma on the downside is key along with the low of the day double bottom. That is around $104.80-$105.00. Stocks mentioned and called in the chat room today include, PTEK and currently BEE which may squeeze on the back of MPG. BEE remains as one of the last few real estate plays to have not run big.

[Steven Vincent]

The markets across the board seem to be in a consolidative mode. There is no definitive action anywhere. Markets seem to be winding up for the next pitch. My guess is that when the markets move we will see an upside continuation in the markets, a countertrend move to the upside in the dollar and a break down in crude oil and precious metals. But it's best to wait and see and let the markets tell you what they are going to do.