Market Commentary: Averages Remain In Red, Melting Upwards, Weakness Prevalent

May 6th, 2014
in Gary's blogging, midday post

Written by

Midday Market Commentary For 05-06-2014

The major averages remain depressed and very much in the red, but technical indicators tell a different story and we may see a reversal before the end of the day.

By noon the averages were down relatively even at -0.55% and rising off the morning lows. Volatility in the Ukraine is fluctuating and some say it is close to war, spooking many investors. Market weakness is obvious, but some bullish investors apparently do not see it as we move on into the afternoon session.

Follow up:

The short term indicators are leaning towards the hold side at the midday. 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 6.79. I would advise caution in taking any position during this volatile transition period although shows a 40 % buy. (Remember this has been negative for weeks.) members' sentiments are 60 % 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 12:15 is at 16453 down 77 or -0.47%.

The SP500 is at 1878 down 7 or -0.37%.

SPY is at 187.75 down 0.67 or -0.36%.

The $RUT is at 1120 down 7 or -0.58%.

NASDAQ is at 4119 down 19 or -0.47%.

NASDAQ 100 is at 3589 down 16 or -0.45%.

$VIX 'Fear Index' is at 13.35 up 0.06 or 0.45%. Bullish 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 sideways and the current bias is positive.

How Oil Really Gets Priced

WTI oil is trading between 100.40 (resistance) and 99.34 (support) today. The session bias is positive and is currently trading up at 100.13.

Brent Crude is trading between 108.21 (resistance) and 107.36 (support) today. The session bias is negative and is currently trading down at 107.42.

Gold fell from 1314.22 earlier to 1304.91 and is currently trading down at 1307.40. The current intra-session trend is sideways.

Analysts forecast a corrosive year for copper prices

Dr. Copper is at 3.062 rising from 3.049 earlier.

The US dollar is trading between 79.56 and 79.09 and is currently trading up at 79.19, the bias is currently negative. (very light activity)

Real Time Market Numbers



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Written by Gary


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