June 1st, 2012
in Gary's blogging
Live Continuing Comments On 06-01-2012 Market Crash
This morning saw a sell-off that was important because of important supports and crucial moving averages that were broken and have yet to recover. Stocks and indexes have continued to melt lower but in a tight range while investors are deciding if it will go lower. Markets at one point eased back up to nearly the opening numbers but then fell to the morning lows. The scoreboard doesn't look encouraging for the bulls as the $RUT fell below its 200 day MA and a major support. The DOW crashed through its major support and then through its 200 day MA without recovering. The SP500 eased through its support but not its 200 day MA.
The bellwether here is SPY. SPY dropped below its support BUT stayed just above its lower Bollinger band and 200 day MA. The DOW is about to form a 'Black cross' on the next session, indicating further losses in store, as its 5o day MA will cross the 100 day MA followed by the SP500 and SPY. Volume has fallen off but remain at a moderate height. Follow up:
The DOW is at 12172down 220or -1.78% (200 day MA is 12254, support is at 12288), the 500 is at 1284down 26.24 or -2.00% (200 day MA is 1284, support is at 1288), the $RUT is at 743.61 down 18.21 or -2.39% (200 day MA is 756, support is at 746) and SPY is at 128.90 down 2.59 or -1.95% (200 day MA is 128.63, support is at 129.20). The trend is down and the current bias is down.
Gold is up to 1613 with a positive bias. WTI oil is at 83.43 being as low as 82.70 this morning. Brent crude is currently trading in the 98.00 area.
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Written by Gary