A CORRECTION DUE SOON?

Eight up days in a row and a break of 280 which came with relative ease. But we have to ask ourselves a question here and that is when will there be some sort of a pull back. When we look at the chart we can notice a couple of things. One is that this is the longest stretch in the March rally without a pullback to the 34 day moving average which sits at 266. Also we are 15 points above that average. On the other hand the MACD indicator just went to a buy and is no where near overbought yet. Clearly money continues to pour into the group so if and when a correction comes it will be sharp and swift.

This morning we have Oppenheimer cutting Spectra Energy (SEP) to market perform from outperform. Not much else happening this morning in on the corporate news side. Crude is down but nat gas is up. Nat gas has inventory numbers later this morning and they will probably show a drawdown as cold weather across the US dominates for the next few weeks. Big rally in the dollar this morning which has stock futures lower.