Going into a holiday shortened week we have a trading range still in place in the SPX. I think we stay in this range thru the rest of the year and find some direction once 2010 arrives. For now support remains at 1085 and resistance up at 1115.While banks and commodities have sold off, the tech sector has held up nicely along with transports. Until we get some kind of broad based move in all sectors then they will keep taking turns each week and the indices overall will consolidate further. Overall this has been a stock picking market with premium selling strategies doing best.
The dollar/stock inverse relationship has almost completely broken down and I think it is a positive long term sign to see stocks holding up and perhaps even starting to rally with the USD. Perhaps growth isn't that bad after all huh?
Buy the dips>> MSFT, VMC, SPG, NTRI
Sell the rips>> FCX