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Pisani: Warning Signs This Morning

Friday, 19 Mar 2010 | 11:55 AM ET

There are a few warnings signs materializing this morning:

1) the dollar has been strengthening the last two days

2) energy commodities and energy stocks under pressure

3) India raised interest rates this morning after their market closed.

While the health care bill is not popular on Wall Street, it is not health care stocks that are weaker. It is the market leaders, like energy and tech.

We've had two days of weakness in energy stocks — as the natural gas numbers were poor yesterday, we saw energy stocks drop, and they are continuing to drop again today. Traders note that energy stocks have outperformed the commodities dramatically over the last few months. The dollar strength is also pressuring commodities.

Still, the market has advanced this week on numerous positive signs:

1) Positive company comments: Boeing, FedEx, Nike

2) Car sales improving in March

3) Credit card delinquencies declining

The technicals have been strong as well:

1) Dow Transports & Industrials simultaneously confirming new highs

2) largest number of new highs: best since 1998

The last month has seen one of the strongest advances since the March low. Traders would not be surprised if there was a pause in the advance here.

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CNBC Data Pages:

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Questions? Comments? tradertalk@cnbc.com

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  • A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

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