Written by Gary
Closing Market Commentary For 04-25-2014
The SP500 closed in on the 50 DMA this morning and backed off; should we view this as bullish or just a test before falling further. The afternoon session was mostly negative as the averages slowly melted downward on sometimes moderate volume.
By 4 pm NASDAQ pulled back from the 2 percent loss, the DOW remained in a triple digit loss and the $RUT led the pack down at -1.67%. Did I mention being cautious was a valid game plan?
As the markets display obvious weakness, investors are concerned just how far down the markets are going to go? BarChart seems to think this is buy situation while the other half thinks were are going to see more red. Admittedly, tomorrow, er, Monday, could be an up day, unless the Ukraine is invaded or is it going to be a full moon? Really, who cares, I, for one, am NOT going to be buying into to this market until the noise has settled down.
NEW YORK (AP) - Stocks were sharply lower in afternoon trading Friday, dragged down by disappointing results from Amazon and Ford. Escalating tensions between the U.S. and Russia over Ukraine also weighed on the market.
In addition to Amazon, other major tech names including Facebook also fell sharply. KEEPING SCORE: The Standard & Poor's 500 index fell 14 points, or 0.8 percent, to 1,864 as of 3:27 p.m. Eastern. The Dow Jones industrial average fell 126 points, or 0.8 percent, to 16,375 and the Nasdaq composite fell 71 points, or 1.7 percent, to 4,076.
All three indexes are now lower for the week. AMAZON PRICE CUT: Amazon, the world's largest online store, sank $33.40, or 10 percent, to $303.75.
Amazon reported late Thursday an increase in first-quarter profit, but the company also said that spending on investments will likely lead to an operating loss in the second quarter.
The short term indicators are leaning towards the hold side at the close. The all important signs of reversal, up or down, have not been observed so we are mostly, at best, neutral and conservatively holding. The important DMA's, volume and a host of other studies have not turned, only a past 6% correction (and recovery) and that is not enough for me to start shorting. The SP500 MACD has turned up, but remains above zero at 3.81. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a 24 % buy. (Really?) Investing.com members' sentiments are 68 % bearish.
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The DOW at 4:00 is at 18362 down 140 or -0.85%.
The SP500 is at 1863 down 15 or -0.81%.
SPY is at 186.32 down 1.54 or -0.82%.
The $RUT is at 1123 down 21 or -1.86%.
NASDAQ is at 4076 down 73 or -1.75%.
NASDAQ 100 is at 3533 down 58 or -1.61%.
$VIX 'Fear Index' is at 14.14 up 0.82 or 6.16%. Neutral Movement
(Follow Real Time Market Averages at end of this article)
The longer trend is up, the past months trend is sideways, the past 5 sessions have been positive and the current bias is negative.
WTI oil is trading between 102.04 (resistance) and 100.49 (support) today. The session bias is negative and is currently trading up at 100.64.
Brent Crude is trading between 110.61 (resistance) and 109.28 (support) today. The session bias is negative and volatile and is currently trading down at 109.42.
Gold rose from 1290.42 earlier to 1305.06 and is currently trading up at 1301.80. The current intra-session trend is elevated, but sideways.
Dr. Copper is at 3.121 rising from 3.105 earlier.
The US dollar is trading between 79.87 and 79.74 and is currently trading up at 79.84, the bias is currently sideways.
Real Time Market Numbers
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Written by Gary