Wednesday, July 22, 2009

Interesting levels on Bonds & the S&P...

This looks like it's hitting the upper band of where i would want to own it (this first one is an ETF that tracks the main investment grade corporate bond index).

As for the S&P, i think it looks like we're approaching a big area. A nice round # of 950 or (even more important) 1,000 could be big areas of resistance. (this chart is of the ETF that tracks the S&P 500).

In general, I think the current market is a bit too optimistic about the recovery and S&P 500 earnings are no where near where they need to be in order to justify these levels. But I've been wrong before and I'm sure I'll be wrong again.

Any thoughts?

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