June 4th, 2012
in Gary's blogging
Closing Market Commentary For 06-04-2012
As noted earlier the upper resistance and 200 day MA's were not challenged today partially because the market participants (volume) were not present in enough numbers to make it possible. That could change tomorrow morning if the US ISM Non-Manufacutring Composite (MAY) rated as a medium importance report comes in below expectations 53.5. My guess is that it will come in lower, so don't be shocked. My views are that not much will take the markets down over the next few day's regardless of the financial reporting until the end of the week. I believe there still many investors clinging onto hopes that we will see a run up so they can depart the market place with some sort of grace. Do you feel lucky or do you wish you would have jumped ship when I suggested 2 months ago. Follow up:
I guess a market run up is possible in the next day or so but Thursday's reporting of Initial Claims, Continuing Claims and Consumer Credit will probably be the straw that breaks the camels back and send the markets plummeting once again. The bad news for the day is that the markets closed below the recently set resistance and 200 day MA's setting the stage for further market decline in the near future. The good news is that there isn't any more bad news. Spy is signaling that we will have a couple of sideways days which corresponds to other signals being given off. Then there is the support zone which we are still in and needs to weaken more by continued selling before we can see a further decline.
Gold is at 1619, WTI oil is at 84.35 Brent crude is currently trading in the 98.97 area and trending down. Dr. Copper closed at 3.33 and it is also melting down.
The DOW closed at 12101down 17.11or -0.14% (200 day MA is 12257, support is at 12288), the 500 closed at 1278 up 0.14 or 0.01% (200 day MA is 1284, support is at 1288), the $RUT closed at 737 down 0.18 or -0.02% (200 day MA is 756, support is at 746) and SPY closed at 127.74 down 0.43or -0.34% (200 day MA is 128.67, support is at 129.20). The trend is down and the current bias is down.An after market selloff is in progress underheavy volume, but will that translate into anything tomorrow morning. In the past it didn't.
The 500 at the close. Should make a black cross when the 50 day MA crosses the 200 day MA by Thursday.
The $RUT at the close. The Russell 2000 has already created a black cross promising further declining.
The DOW at the close. The DOW will have created a black cross tomorrow.
The Indexes at the close.
Just saw this Feb 17, 2010 article on the Black Cross and the chart is interesting to say the least. SO WATCH OUT!!!
And for a bit of evening homework, please study the following article.
“The following chart from Ray Dalio's Bridgewater probably explains why the words "funding gap" (or "math") will never be uttered by any Eurocrat as that would mean the jig is up. It is also quite self-explanatory.”
Our premium Subscribers were told (suggested) to sell their SQQQ at 3:15. I got rid of mine at 57.70 a 4.86 point profit, but still not what these 3X ETF's can do. Closing price of SQQQ is 56.78 caution is still advised.
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Written by Gary