Yesterday, decent earnings reports, along with the technology sector finally showing some leadership after several days of losses, pushed the Dow within striking distance of breaking through its 12,000 level.
Some headwinds, as a result of not very exciting report cards from American Express and Texas instruments, may delay a break through that milestone today, unless other positives outweigh those two negatives. Last time the Dow hovered above the 12,000 level was on June 19, 2008, only four days prior to our domestic sell signal being issued.
Crude oil and interest rates were lower, and the dollar fell as the European Central bank signaled that inflation pressures must be watched carefully, which was interpreted that odds of an interest rate hike have increased. Inflationary pressures are certainly not an issue at this point here in the U.S., and the Fed is expected to hold rates steady.