Closing Market Commentary For 08-19-2013
Afternoon session brought the 'worry rains' for some investors that didn't heed the warning signals from last week. The averages started tumbling around 1pm in earnest as Mr Market threw in the towel for the day.
By 4 pm volume had picked up to moderate levels with a big red spike at the close. Tomorrow could see more selloff as there isn't any high level financial reporting. Wednesday is another story.
Tomorrow could sell off setting the stage for a nice bull run if the if the existing home sales. That is because sellers of used homes often use capital gains from property sales on consumption that stimulate the economy.
Last week I said we would most likely see a 5% correction and we are well on our way to see that goal being met. The support level I am looking for on the DOW is at 14915 and 1631 on the SP500. After that we will most likely see some sort of a recovery. This recovery could be a 100 points on the DOW and then continue its way back down or continue up - the tea leaves won't say. I would play the option of a minor recovery when the time comes.
Interesting article read this afternoon.
The DOW at 4:00 is at 15011 down 71 or -0.47%.
The SP500 is at 1646 down 10 or -0.59%.
SPY is at 164.94 down 1.06 or -0.64%.
The $RUT is at 1013 down 11.05 or -1.08%.
NASDAQ is at 3589 down 14 or -0.38%.
NASDAQ 100 is at 3070 down 4 or -0.14%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been negative and the current bias is negative.
WTI oil is trading between 107.82 and 106.32 today. The session bias is sideways and is currently trading up at 106.82.
Brent crude is trading between 109.59 and 110.97 today. The session bias is negative and is currently trading down at 109.75.
Gold fell from 1384.08 earlier to 1362.28 and is currently trading down at 1365.60.
Dr. Copper is at 3.330 falling from 3.372 earlier.
The US dollar is trading between 81.42 and 81.17 and is currently trading up at 81.28, the bias is currently sideways.
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Written by Gary