Daily Recap - 02/17/2009

1. S&P pushed up against its 1100 resistance but was not able to break it. The broad index did manage almost 5 point gain as good earning reports and positive economic data helped ease fears over Greece and the Euro.
2. S&P is about to meet its 50 day MA, this time from below - it should be interesting to see if the moving average, which served as somewhat of a support during the 09 rally, will now serve as resistance.
3. The dollar has maintained its recent highs even as equities moved higher. Dollar strength comes largely due to Euro weakness as the single currency fails to shake off investors' concerns. 
4. Fed minutes released today revealed (no surprise) that the Fed is ready to remove some of the emergency measures put in place. Market's reaction to the report was muted.
5. Major economic data released tomorrow: PPI, unemployment claims, and Philly manufacturing index. A better than expected (or even in-line) reading should help the S&P extend beyond its current 1100 level. Such a move should also support a continued move higher for the USDJPY and other yen pairs. A better than expected reading should also facilitate greater USD strength against the Euro.
6. Conversely, a surprise on the downside will definitely sent stocks lower. In this scenario, we should expect to see EURJPY trending lower, possibly to test its recent lows.