Market Commentary: Small Caps Lose, Large Caps Win In Volatile Session

April 28th, 2014
in Gary's blogging, market close

Written by

Closing Market Commentary For 04-28-2014

The DOW made a 187 point swing today much to the delight of traders, but very concerning to the longer term investors.

By 4 pm the averages had moved from the session lows upwards to where the small caps were at lest flat while the DOW was up +0.53%. The regression trend line from April 22, is still moving downward, not a good sign for the bulls.


Follow up:

We constantly discus the possibilities of the markets making correction in light of World events, but a crash is also not out of the question, just not as likely.

Is A Crash Inevitable? The Spiral Vortex Of Debt And Corruption

What you have to realize is that this trend is inevitable... we are hopelessly lost in a declining spiral vortex of debt and corruption that will only change with war and civil unrest.

 

 

 

 

Something we have been watching is the $RUT and its negative antics which are disturbing.

Russell 2000 Loses Critical Support As MoMo Massacre Accelerates

Momentum, or high-growth hope, stocks are making fresh lows of the February Tarullo Top as this morning's mysterious buying panic sparked by housing data has relapsed into aggressive selling pressure.

The Russell 2000 has broken below its 200DMA once again - a critical support level - and Nasdaq and Trannies ar emaking new lows from Friday. Momentum, or high-growth hope, stocks are making fresh lows of the February Tarullo Top as this morning's mysterious buying panic sparked by housing data has relapsed into aggressive selling pressure.

The Pharma frenzy is fading fast also. The Russell 2000 has broken below its 200DMA once again - a critical support level - and Nasdaq and Trannies are making new lows from Friday. All US equity indices are now in the red for April.

The short term indicators are leaning towards the hold side at the closing. 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 flat, but remains above zero at 3.92. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a 8 % sell. (Remember this has been negative for weeks.) Investing.com members' sentiments are 74 % bearish.

If you would like to get advanced buy/sell tweets, sign-up in the column to the right of this post by clicking on the 'Follow' button. Write me with suggestions and I promise not to bite.

­The DOW at 4:00 is at 16449 up 87 or 0.53%.

The SP500 is at 1869 up 6 or 0.32%.

SPY is at 187.05 down 0.59 or 0.31%.

The $RUT is at 1117 down 6 or -0.53%.

NASDAQ is at 4074 down 1.16 or -0.03%.

NASDAQ 100 is at 3545 up 12 or 0.34%.

$VIX 'Fear Index' is at 13.99 down 0.07 or -0.50%. 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 4 sessions have been negative and the current bias is positive.

How Oil Really Gets Priced

WTI oil is trading between 101.51 (resistance) and 100.35 (support) today. The session bias is positive and is currently trading up at 100.97.

Brent Crude is trading between 110.19 (resistance) and 107.87 (support) today. The session bias is negative and is currently trading down at 108.27.

Gold fell from 1306.49 earlier to 1292.12 and is currently trading up at 1296.00. The current intra-session trend is negative.

Analysts forecast a corrosive year for copper prices

Dr. Copper is at 3.092 gaping down from 3.123 earlier.

The US dollar is trading between 79.91 and 79.61 and is currently trading up at 79.77, the bias is currently sideways.

Real Time Market Numbers

 

 

Leading Stock Quotes powered by Investing.com

 

 

To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

gary@econintersect.com

 

Written by Gary

 









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