Technical Outlook Still Bearish As Market Melts Down

June 26th, 2012
in Gary's blogging

Opening Market Commentary For 06-26-2012

Markets opened up on extremely low volume and trading in a tight range as investors await the medium rated importance Consumer Confidence followed by the low rated Richmond Fed Manufacturing Index. The meltup continued slowly until the financial reports. The US Consumer Confidence falls to 62.0 in June vs. 63.0 expected. Prior revised down (as usual) to 64.4 from 64.9. The US Richmond Fed Manufacturing Index (JUN) fell to -3 while economists expected a plus 2. Interestingly the markets had a very brief melt down followed immediately by a brief recovery. The end result was a zero net sum game. RRR** is solidly in the negative zone and swing traders need to observe caution. I see a market improvement during the week but not so great as to sell your short position or go into long ones, although the technical long term is still bearish.

Follow up:

Expect the markets to melt down this morning until the volume becomes anemic when DaBoyz will push the indexes back up. Actually, today just might turn out to be another golf day as there is no news. Cyprus hasn't slid into the Aegean, Spanish Banks doors are still open and the Iranians haven't bombed Israel yet. So far a very slow news day for driving the markets one way or the other.

WTI oil is at 79.08 trading between 79.60 and 78.70 and the bias is negative.

Brent crude is at 92.14 trading between 90.75 and 90.35 and the bias is neutral.

Gold is down today at 1573, trading between 1587 and 1572 with a negative bias.

Dr. Copper is at 3.32 even from 3.32 earlier.

** RRR = Risk Reward Ratio

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Written by Gary


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