Quick Market Update
After moving higher this morning, the market has retrenched, failing to secure the new highs. While the Dow has made new highs recently, the S&P continues to struggle to breach and stay above the 1110 mark. Furthermore, the Russell 2000 is in worse shape, well off its previous highs. This indicates the rally is being led by fewer and fewer stocks, namely the blue chips that make up the Dow. Normally, you could assume that these facts mean an end to the rally is coming, but these days… who knows.
There is an interesting read over at ZeroHedge that shows the S&P priced in gold is back to April levels and moving lower. Some say, including me, that this gives a better picture of your “real return”, especially as our fearless leaders do their best to turn greenbacks into toilet paper.